The UK new car market suffered a 4.1% year-on-year decline in April, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).
Some 161,064 units were registered in the month, the second lowest April volume since 2012. The decline was driven by a 10.3% drop in private registrations, following a rise of more than 26% in April 2018. Fleet demand on the other hand, remained stabled, growing 2.9% year-on-year.
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Declines were seen across most vehicle segments, with supermini and small family cars experiencing the most significant falls, down 14.1% and 10.6% respectively. The dual purpose segment grew by 18.4% to 40,580 units – and now represents the third most popular body type, with registrations tripling since 2012.
Zero-emission plug-in hybrids experienced a significant drop of 34.4% year-on-year. The SMMT attributed the decline to the premature removal of upfront purchase incentives before the market is ready.
Some 40 plug-in models are now available in showrooms, with another 20 expected to arrive in 2019. For the emerging sector to reach ‘meaningful levels’, the SMMT notes that measures and incentives will be vital to building business and consumer confidence.
Mike Hawes, chief executive of SMMT, said: “While it’s great to see buyers respond to the growing range of pure electric cars on offer, they still only represent a tiny fraction of the market and are just one of a number of technologies that will help us on the road to zero. Industry is working hard to deliver on this shared ambition, providing ever cleaner cars to suit every need.
“We need policies that help get the latest, cleanest vehicles on the road more quickly and support market transition for all drivers. This includes investment in infrastructure and long term incentives to make new technologies as affordable as possible.”
Market reaction
“April car sales figures traditionally live in the shadow of the bumper numbers recorded in March, and this year has followed that trend,” said James Fairclough, chief executive of AA Cars. “While official data shows average wages are rising at a decent rate – and easily outpacing inflation – many consumers are clearly still cautious about making big-ticket purchases like cars.”
Alex Buttle, director of Motorway.co.uk, noted that the switchover to alternative fuel vehicles (AFVs) should already be in full swing. “Yet the car market has grown accustomed to disappointing growth figures in recent times, so there will not be much ‘boardroom shock’ stemming from these latest torrid numbers.
“The danger is that the AFV market could stutter as, aside from the obvious environmental reasons, consumers have little incentive to buy electric at the moment, particularly with Brexit uncertainty dragging consumer confidence into the floor.”
Sean Kemple, director of sales at Close Brothers, said that Brexit uncertainty is not wholly responsible for the decline. “The ramifications of WLTP are still being felt. Would-be buyers are being put off by huge waiting times on a number of makes and models, and dealers are struggling to fill their forecourts with the vehicles customers want.
“There are opportunities within the existing customer base, whether that be offering different models, fuel types, or finance offerings.”
