UK New Car Market Declines In 2017

By Paul Homewood

New car registrations in the UK fell by 5.7% last year, largely due to anti-diesel sentiment from government.

Total registrations fell by 152,000, but diesel numbers dropped by 219,000.

This drop was only partially offset by higher petrol sales of 36,000, and AFVs of 31,000. Of the latter, EVs increased by 10,000 to 45,000, still only representing a tiny 1.8% of total registrations, despite the large subsidy on offer.

Mike Hawes, SMMT Chief Executive, commented:

The decline in the new car market is concerning but it’s important to remember demand remains at historically high levels. More than 2.5 million people drove away in a new car last year, benefitting from the latest, safest, cleanest and most fuel efficient technology.

Falling business and consumer confidence is undoubtedly taking a toll, however, and confusing anti-diesel messages have caused many to hesitate before buying a new low emission diesel car. Keeping older vehicles on the road will not only mean higher running costs but will hold back progress towards our environmental goals. Consumers should be encouraged to buy the right car for their lifestyle and driving needs irrespective of fuel type – whether that be petrol, electric, hybrid or diesel as it could save them money.

2017 has undoubtedly been a very volatile year and the lacklustre economic growth means that we expect a further weakening in the market for 2018. The upside for consumers, however, is some very, very competitive deals.

Government policy towards diesel cars has been dreadfully ambiguous in the past year. There has been talk of increasing taxation on them, though in the end the budget was a damp squib in that respect.

But, I believe, great damage has been done by various threats to impose punitive charges for diesel cars to enter towns and cities in the future. The sort of amounts mooted would be quite unaffordable for many people, who rely on their cars to get to work.

It is hardly surprising then that many drivers are now holding back from replacing their cars, until things become clearer.

The government has been very weak in this respect, albeit under pressure from the need to improve air quality in cities. Although it has said that local councils must show they have considered other means to deal with air quality, the door has been left open for charging.

Knowing just how greedy councils are, who would bet against such charges being commonplace in a few years time?

The big irony is that older, more polluting cars are being kept on the road longer.

All the government can say is:

“Our ambitious Clean Growth Strategy sets out the UK’s position as a world-leader in cutting carbon emissions to combat climate change while driving economic growth.

“This includes investing nearly £1.5bn in accelerating the roll-out of ultra-low emission vehicles by 2020 – generating business opportunities and leading to cleaner air and lower greenhouse gas emissions.”

Yet the figures make it totally clear that the vast majority of drivers have no absolutely no interest at all in buying electric cars.

Government obsession with climate change risks causing grave damage to the UK car industry, one of the country’s big success stories in recent years.