New car registrations fall 5.7% in 2017

New car registrations fell for the primary time in six years in 2017, shedding Five.7% to two.54m automobiles. This is mainly because of falling shopper self assurance, worsening change charges and considerations over the way forward for diesel in step with trade frame, the Society of Motor Manufacturers and Traders (SMMT).

Although 2.54m registrations marks a drop on 2016 figures, it’s the 3rd biggest registrations 12 months in a decade and the 6th easiest since data began in the 1950s. It additionally follows a vastly a success 12 months in 2017. 

“We must keep perspective: this is not the industry falling off a cliff edge – it is a retraction from exceptional highs in the face of significant challenges,” mentioned SMMT leader government Mike Hawes, who predicted an extra fall of Five-7% over the process 2018.

Brand through emblem smash down – the winners and losers of 2017’s new car marketplace

The drop got here regardless of a record-breaking first 3 months of 2017, stimulated through consumers dashing to overcome VED tax adjustments in April. Most markedly, diesel registrations dropped dramatically in the general part of 2017; they fell 31.1% year-on-year in December (towards an total year-on-year decline in registrations of 14.four% in December), and 17.1% year-on-year throughout all of 2017. Registrations of petrol automobiles in 2017 grew marginally through 2.7%.

Private registrations declined through 6.eight%, with fleet registrations down four.Five% and trade registrations falling through 7.eight%.

“Diesel has suffered from confusion among consumers about its environmental impact, but we believe there is increasing clarity about the benefits of the latest engines,” mentioned Hawes. “There is strong evidence that diesel owners have held off replacing their cars until they get clarity rather than simply going out and buying a petrol car instead, and our belief is that many of them will return to the market this year.”

Hawes steered that executive bulletins across the banning of petrol and diesel engines from 2040 – later published to be faulty – plus the imposition of greater VED and corporate car taxes from April 2018 had been accountable for shopper confusion.

Scrappage schemes – all you want to grasp

“Diesel is far from dead,” mentioned Hawes, who predicted it’ll account for 40% of registrations – greater than 1,000,000 automobiles – in 2018. “Everyone must take into account that there are proper forms of era in the market for several types of riding. If you pressure prime mileages or a bigger automobile, then the newest diesels will incessantly be offering important advantages.

“Of course, we need to make the case for it clearer, and we have the facts regarding CO2 and NOx improvements to bear that out. The environmental impact is clear: without an uplift in diesel sales, we have no chance of hitting the required CO2 targets.”

The moderate CO2 determine for automobiles registered in 2016 was once 120.1g/km, which rose to 121.04% in 2017; closing 12 months is the primary 12 months since data started in 2002 that the determine has risen year-on-year.”

Hybrid, plug-in hybrid and electrical car registrations made up four.7% of the marketplace in 2017, the best possible share but, accounting for 119,000 of the two.5m registrations. That is an increase of 34.eight% from 2016.

Of that quantity 13,500 had been electrical automobiles. “We are making progress, but it is clear that there is a long journey to go on to earn the support of consumers,” mentioned Hawes.

Superminis, small circle of relatives automobiles and SUVs endured to be the most well liked marketplace segments in the United Kingdom, with the latter now accounting for one in 5 new automobiles bought in the United Kingdom. The SUV phase was once additionally the best marketplace phase to develop in 2017.

Read extra

Brand through emblem smash down – the winners and losers of 2017’s new car marketplace

Scrappage schemes – all you want to grasp

Government pronounces all automobiles bought in UK after 2040 should be electrified 

Insight: is it time to surrender at the diesel engine?

New car registrations fall Five.7% in 2017

Source link

Reply