New car sales experienced a year-on-year drop for the first time in over three and a half years, according to figures released by the Society of Motor Manufacturers & Traders (SMMT).
The 177,664 cars sold in October 2015 was 1.1% less than the amount sold in the same month in 2014.
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One highlight from the month was that alternative fuelled vehicles (AFV) reached 3% market share for the first time, following 13.8% year-on-year growth. In contrast, sales of both petrol and diesel cars shrank.
Fleet was the only market sector to see an increase in sales, up 2.2% year-on-year to 92,428. Private sales fell by just over 2,000 cars compared to October 2014, to 78,825.
All of the big three brands (Ford, Vauxhall and Volkswagen) experienced reduced sales. Vauxhall sales experienced the biggest year-on-year decline, down 16.39% to 15,891.
It wasn’t bad news for all brands, however. BMW sales grew by 32.01% year-on-year to 13,938 cars. This allowed the German manufacturer to leapfrog Audi sales (which grew 2.24% year-on-year to 13,182) to fourth place, just 32 units behind Volkswagen.
Land Rover had a good month, with sales growing 40.51% year-on-year to 5,192. Mercedes and Honda also both experienced double digit year-on-year growth, at 13.53% and 11.23% respectively.
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By GlobalDataMike Hawes, SMMT chief executive, said: "The UK car market has gone through a period of unprecedented growth and, so far, 2015 has been a bumper year with the strongest performance since the recession. As expected, demand has now begun to level off but the sector is in a strong position, as low interest rates, consumer confidence and exciting new products combine to attract new car buyers. The current full-year growth forecast remains on track."
Sue Robinson, director of National Franchised Dealers Association (NFDA), said: "As 2015 draws to a close, we are still seeing a strong market but as expected the market is beginning to slow down as we enter the final few months of the year.
"Low interest rates, consumer confidence and new products combine to attract new car buyers. The current full-year growth forecast remains on track, and we are encouraged that the growth and stability of the market will continue through the remainder of the year."
Philip Nothard, CAP consumer and retail editor, said the slowdown was to be expected after exceptional growth in 2014. He said: "Q4 2014 saw the highest year-on-year growth of that year, which had a 14.24% increase on 2013, across the year. October 2015 had a lot to live up to, in terms of performance, so it’s no surprise that we’ve seen a slight slip in numbers."
"The fact is, the UK car industry is on track for a record year. Even if the UK doesn’t register a growth in new car sales in November and December, we’ve already exceeded annual figures for 2008 through to 2014. With no registrations for November and December, 2015 would still be the fourth highest year in a decade, so there’s a lot to celebrate.
"However, the year isn’t over yet. The sentiment within the franchise dealers, is that even with the high levels of pre-registration stock in the market on the back of recent months, there are no easing for target expectations and the consumer incentives remain extremely attractive."
