UK car sales set for first annual decline since 2011 after September slump

LONDON

British new car registrations on Thursday appeared on course for their first annual fall since 2011 after a 9.3 per cent tumble in September, a month which normally accounts for around 15 per cent of demand.

Sales were hurt by business and political uncertainty as Britain prepares to leave the EU and confusion over government plans on diesel and petrol cars, which could include new levies or restrictions, the Society of Motor Manufacturers and Traders (SMMT) said.

Sales totalled 426,170 vehicles with demand falling across the board, SMMT data showed, leaving year-to-date registrations down 3.9 per cent.

“This decline will cause considerable concern,” SMMT Chief Executive Mike Hawes said.

“Business and political uncertainty is reducing buyer confidence, with consumers and businesses more likely to delay big ticket purchases.” Demand has fallen year on year since April due to a combination of factors including an increased vehicle excise duty, weaker consumer confidence and record sales in 2015 and 2016.

But September is normally a strong month for car sales, partly due to the fact licence plates indicating the age of a vehicle change on March 1 and Sept. 1.

Demand for diesel cars slumped 21.7 per cent and petrol fell 1.2 per cent. Sales to fleet business buyers declined 10.1 per cent and to consumers fell by 8.8 per cent.