New car registrations in the UK dropped 3.4% in March, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).
The report noted that March is a crucial month for the new car market, as the plate change piques the interest of buyers. A drop of 3.4% year-on-year could be attributed to the economic uncertainty and continuing confusion over diesel affected demand, SMMT said.
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The private and business sectors also recorded declines, with demand falling 2.8% and 44.8% respectively. Fleet demand remained stable, up 0.3%. Almost every vehicle type saw a drop in demand, including SUVs (-1.7%) and small family cars (-4%). Superminis – the country’s favourite vehicle type – recorded a 4.4% increase in demand, representing a third of all registrations.
Diesel registration continued its recent decline, falling 21.4% in March, while petrol demand grew 5.1%. Demand for alternatively fuelled vehicles rose 7.6% to 25,302 registrations – a record for March.
The report also found that eight in 10 new cars host driver assistance technology, designed to mitigate driver error and prevent accidents. Autonomous emergency braking is now available in 70% of UK cars, with over half featuring the technology as standard.
SMMT also found that the UK consumers could be among the first in the world to experience self-driving vehicles, with the UK rated first globally for mass market potential. However, the realisation of the roll-out is dependent on the country leaving the EU with a deal that benefits the automotive industry, SMMT said.
“March is a key barometer for the new car market, so this fall is of clear concern,” said Mike Hawes, SMMT chief executive. “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.
“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,” Hawes concluded.
