SMMT urges government to back new-tech diesel, as uncertainty continues to impact new car market

  • UK new car market declines by moderate -3.5% to 234,945 registrations.
  • Strong growth for petrols and plug-ins can’t offset heavy diesel declines, with demand down -28.2% as buyers hesitate.
  • Year-to-date market falls -6.3%, with 1.3 million new cars joining UK roads in first six months.
  • SMMT calls for technology neutral strategy giving motorists confidence to buy right car and right technology for their needs.

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June new cars and YTD

The UK new car market declined moderately in June, with year-on-year demand falling by -3.5%, according to the latest figures released today by the Society of Motor Manufacturers and Traders (SMMT). 234,945 new cars joined British roads in the month as the market continues to stabilise following turbulence over the past year or so.

Demand from larger fleets fell -6.4%, but business buyers with fewer than 25 vehicles on their books returned to showrooms, registering an 11.3% uplift in demand after an 11-month long hiatus. Private demand was largely flat, at -0.6%.

Smaller cars remained most popular, with Supermini and Lower Medium vehicles taking a combined 57.4% market share. However, Dual Purpose was the fastest growing segment, with demand up by some 16.4% – 6,710 more than in the same month last year. Dual Purpose, Executive (+4.3%) and Luxury Saloon (+1.3%) were the only segments to register growth in June.

Jun registrations 2002 to 2018

There was good news for the alternatively fuelled vehicle sector, with a 45.0% increase in plug-in and hybrid registrations as consumers responded to a growing range of models. Petrol cars also attracted more buyers, with demand up 12.3%. However, this growth was not enough to offset continuing decline in diesel registrations, with a -28.2% fall a result of continuing consumer uncertainty over future policy towards this technology.

June capped off a turbulent first half of the year, distorted by the previous year’s VED hikes, with the market experiencing a severe double-digit decline in March followed by a stronger April and May, when year on year demand grew. Year-to-date, overall demand remains down, by some -6.3% to 1,313,994 units.

Mike Hawes, SMMT Chief Executive, said,

Despite a rocky first six months for the new car market, it’s great to see demand for alternatively fuelled vehicles continue to rise. Given these cars still represent only one in 20 registrations, however, they cannot yet have the impact in driving down overall emissions that conventional vehicles, including diesels, continue to deliver. Recent government statements acknowledging the importance of petrol and diesel are encouraging. However, we now need a strategy that supports industry investment into next generation technologies and puts motorists back in the driving seat, encouraged to buy the car that best suits their needs – whatever its fuel type.

June best selling cars

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