Use public money to bring new car buyers back to forecourts, Government urged

Automotive industry commentators are calling for Government action after new car sales fell for the 10th consecutive month in January.

Demand for new cars dropped by more than six per cent in January 2018, with 10,949 fewer vehicles leaving showrooms compared to the same month in 2017.

The negative figures have been labelled as 'bleak' by those within the industry, with the AA calling for the Government to use public money to incentivise new car buyers back to showrooms. 

"This data is the first real temperature test of the overall health of the new car industry and it paints a fairly bleak picture," commented Simon Benson, of AA Cars.

"The Government needs to act now to incentivise new car buyers back to forecourts before this decline causes real damage."

"Our research suggests a lack of consumer confidence cost the industry an estimated £2.6 billion in 2017 alone. The Government needs to act now to incentivise new car buyers back to forecourts before this decline causes real damage."

Business and private sales fell by a respective 29.7 and 9.5 per cent in January, with manufacturer-backed scrappage schemes failing to convince owners to trade-in their old car for a new model.

As in previous months, registrations of new diesels fell heavily, with a 25.6 per cent drop in January. However, petrol sales rose by a modest eight per cent while alternatively fuelled vehicles – electric and plug-in hybrid – increased by 5.5 per cent.

Yet, despite the increase in demand for electric and hybrid cars, their collective 9020 sales failed to plug the 20,000+ new car black hole that has been created by the mass exodus from diesel. 

The SMMT - the body that represents car manufacturers and dealers - is once again calling on the Government to change its policy

"Given fleet renewal is the fastest way to improve air quality and reduce CO2, we need Government policy to encourage take up of the latest advanced low emission diesels as, for many drivers, they remain the right choice economically and environmentally," says SMMT Chief Executive, Mike Hawes