UK new car registrations declined by 3.4% last month, as “political and economic uncertainty” and “continuing confusion over diesel” affected demand, according to figures released by the Society of Motor Manufacturers and Traders (SMMT).
The trade association said March was a “crucial month” for the new car market, as the plate change drives buyers into showrooms, with new car demand often seen as a “bellwether for consumer confidence” and the “health of the wider economy”.
Demand fell in both the private and business sectors, with registrations down 2.8% and 44.8% respectively, while fleet demand was stable, up 0.3%. Declines were seen across almost every vehicle segment, including dual purpose (-1.8%) and small family cars (-4%).Following the trend of recent months, diesel registrations fell -21.4% while petrol demand grew 5.1%. Meanwhile, demand for alternatively fuelled vehicles (AFVs) increased by 7.6% with 25,302 registered, the biggest March volume on record. With almost 40 plug-in models on the market in the UK, and over 20 more expected to arrive in 2019, demand for these new technologies is expected to continue to grow.
Mike Hawes, SMMT CEO, said: “March is a key barometer for the new car market, so this fall is of clear concern. While manufacturers continue to invest in exciting models and cutting-edge tech, for the UK to reap the full benefits of these advances, we need a strong market that encourages the adoption of new technology.
“That means supportive policies, not least on vehicle taxation and incentives, to give buyers the confidence to invest in the new car that best meets their driving needs. Above all, we urgently need an end to the political and economic uncertainty by removing permanently the threat of a no-deal Brexit and agreeing a future relationship that avoids any additional friction that would increase costs and hence prices.”
