Diesel speculation blamed for slump in new car registrations

Speculation and mixed Government messages are to blame for a slump in new car registrations, according to industry commentators.

Figures released today by the Society of Motor Manufacturers and Traders (SMMT) reveal that the new car market was down by 3.5 per cent in June compared to the same period in 2017.

The National Franchised Dealers Association (NFDA) says that more certainty is required to encourage people to buy new cars.

"To ensure continued stability, it is important that consumers are provided with clear facts and information to enable them to select the car that best suits their needs," said the NFDA's director, Sue Robinson.

The organisation has been working alongside dealers to provide as much information and guidance as possible to customers to ensure that they can choose the car best suited to their needs and driving habits. Despite this, 31 per cent of car buyers said they didn't know what fuel type their next car would be in a recent NFDA survey.

There has also been ongoing confusion over the future of the Plug-in Grant that gives car buyers up to £4500 off the list price of a new electric vehicle. The scheme was officially ended in April 2018; however, after a month of silence from the Department for Transport it was suddenly extended to October 2018. It is unclear if it will be extended beyond this date, with the DfT refusing to say how much public money remains in the scheme.

Registrations of alternatively-fuelled vehicles including electric and hybrid cars rocketed by 45.0 per cent in June compared to the same period last year. Petrol also saw a rise of 12.3 per cent, but diesel registrations plummeted by 28.2 per cent.

"It’s great to see demand for alternatively fuelled vehicles continue to rise," said SMMT chief executive Mike Hawes. "Given these cars still represent only one in 20 registrations, however, they cannot yet have the impact in driving down overall emissions that conventional vehicles, including diesels, continue to deliver."

Despite a drop in new car registrations in June, industry insiders say they're optimistic that the market will remain buoyant following a positive second quarter.