THE UK new car market remained steady in August, with just 1,521 fewer cars registered than in the same month last year.
Latest figures from the Society of Motor Manufacturers and Traders (SMMT) show registrations fell by 1.6% in what is typically one of the smallest months of the year.
Falling demand for diesel and plug-in hybrid vehicles continued to impact the overall market.
Registrations from both the private and fleet sectors declined in the month, down -1.7% and -3.5% respectively, as demand in the small volume business segment increased by some 962 units.
Meanwhile, diesel registrations fell for the 29th month in a row, though at a slower pace than recently experienced (-12.2%), while petrol demand remained stable, up 1.0%.
Zero emission cars saw the biggest percentage growth, up 377.5%, to 3,147 units as new models and some pent up demand boosted registrations, while 4,014 hybrid electric cars also joined UK roads, an uplift of 36.2%.
However, the decline in plug-in hybrid registrations continued, down -71.8% to just 907 vehicles.
Mike Hawes, SMMT Chief Executive, said, “August is typically the new car market’s quietest month so the huge increase in EV registrations is very visible but especially welcome. It’s great to see consumers respond to the massive industry investment made over many years.
“While this is encouraging, these figures also show the scale of the challenge ahead. It’s a long road to zero and while manufacturers can deliver the technology, they can’t dictate the pace of uptake.”
Michael Woodward, UK automotive lead, Deloitte, said that the long-term decline in diesel car sales means that problems are mounting up for manufacturers and their partners.
He added: “As sales continue to decline, the industry is having to manage a surplus stock of new and used cars.
“Despite an encouraging month, there are potential headwinds. The value of the pound against the euro has fallen by 16% over the past three years, including a decline of 5% in the last six months.
“So far, the consumer has been shielded from price rises associated with currency fluctuation, but if the pound continues to decline, manufacturers may be forced to pass on the costs to consumers. If they do this at a time of surplus stock in used cars, this could put a huge dent in demand.”
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