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UK new car market declines by 6.3%

Date: 06 February 2018   |   Author: Sean Keywood

The UK new car market suffered a drop in sales in January as the decline seen in 2017 continued, although the picture was healthier among fleets.

Registrations fell by 6.3% compared with January 2017 to 163,615 cars, according to figures released by the Society of Motor Manufacturers and Traders (SMMT).

Continuing the trend from last year, an increase in registrations for cars powered by petrol (8.5%) and alternative fuels (23.9%) was not enough to offset a decline in diesel, which saw registrations fall by 25.6%.

Despite the overall decline, the fleet market held up relatively well, with registrations down by only 1.8%, compared with 9.5% for private buyers.

Business sales, classed as those made to companies with 24 or fewer vehicles, dropped by 29.7%, but these make up less than 3% of the overall market.

The only vehicle segment to see overall growth was SUVs, with registrations up by 6.6%. SUVs now account for 20.2% of all new car registrations.

The SMMT blames the decline in diesel registrations on continuing confusion over government policy, which it says is causing buyers to hesitate.

It has warned this could have severe consequences, as last year more than two in five cars made in the UK were diesels, while manufacturers also made more than one million engines.

SMMT chief executive Mike Hawes said: "The ongoing and substantial decline in new diesel car registrations is concerning, particularly since the evidence indicates consumers and businesses are not switching into alternative technologies, but keeping their older cars running.

"Given fleet renewal is the fastest way to improve air quality and reduce CO2, we need government policy to encourage take up of the latest advanced low-emission diesels as, for many drivers, they remain the right choice economically and environmentally."

The UK's bestselling car in January was perennial market leader the Ford Fiesta, with 8,335 registrations - nearly double the figure recorded by the second-placed Volkswagen Golf, with 4,310.

The Ford Focus was third, with 4,105. 



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