News & Views

SMMT - new car registrations trending lower
10th October, 2017

The UK new car market has declined for a sixth consecutive month in September 2017. logical Commercial Director, Nigel Kerr, has said that "new car registrations continue to trend lower than 2016 levels, with diesel being particularly hard hit. However, the rise of alternatively fuelled vehicles continues with registrations now up 34.6% year to date."

The Society of Motor Manufacturers and Traders (SMMT) reports that new car registrations fell by -9.3% in the month, due to economic and political uncertainty, and confusion over air quality plans. It is the first time that the September market has fallen in 6 years with demand from business, fleet and private buyers all down in September, by -5.2%, -10.1% and -8.8% respectively.

Diesel vehicles saw the biggest decrease, with September registrations falling for the sixth consecutive month by -21.7%. The confusion around air quality plans and the need to meet challenging industry and government CO2 targets led to this drop in consumer and business demand for diesel.

If new diesel registrations continue on this negative trend, UK average new car CO2 levels could potentially rise this year, the first time such an increase would have occurred since average CO2 emissions were recorded. Maintaining a strong demand for the latest new diesel vehicles is essential for the health of the UK automotive sector that employs over 814,000 people.

Year-to-date new car registrations have fallen -3.9%. But, overall, the market remains at historically high levels with over 2 million vehicles hitting UK roads so far, this year.

Demand for alternatively fuelled vehicles continues to accelerate in September with new car registrations surging 41% in the month. With this trend in mind, logical has produced a white paper detailing its Future Electric Vehicle & Reduced Emissions strategy (FEVRE).

Please click here to view our whitepaper document.

Source: SMMT