Data file.
Thestatistics
| SMMT SALES DATA | TAKING STOCK |
SMMT sales data Feb/year to date
5
MONTHLY STATISTICS
Another dip for new car market, but it’s still at a ‘good level’ says SMMT T
he UK new car market dipped again in February, according to figures released at the start of March by the Society of Motor Manufacturers and Traders. A total of 80,805 new cars were registered, a 2.8 per cent drop compared with February 2017, in what is traditionally one of the quietest months of the year ahead of the March number-plate change. The new car market has now declined for 11 consecutive months. Continuing recent trends, demand for petrol and alternatively-fuelled vehicles (AFVs) rose, up 14.4 per cent and 7.2 per cent respectively, with the former driven by some new, smaller models coming to market. Registrations of new diesel cars declined 23.5 per cent. So far this year, the UK new car market has declined 5.1 per cent, with registrations by business, private and fleet buyers all down: 29.8 per cent, 7.1 per cent and 2.1 per cent respectively. Meanwhile, double-digit growth for petrol cars and AFVs has been unable to offset the move away from diesel, which now commands a 35.6 per
cent market share. The discrepancy in demand suggests diesel car owners are keeping their older cars for longer. Mike Hawes, above, SMMT chief executive, said: ‘Although the new car market has dipped, it remains at a good level despite the drop in demand for diesel. Looking ahead to the crucial number plate-change month of March, we expect a further softening, given March 2017 was a record as registrations were pulled forward to avoid VED changes.’ Ian Gilmartin, head of retail and wholesale at Barclays Corporate Banking, added: ‘Another fall for the new car market should come as no
surprise, but also needs to be viewed in context, as the very high sales figures posted in the last couple of years were always going to be difficult to maintain. ‘The dip in February was less pronounced than in January, although it’s worth remembering that February data isn’t a particularly reliable bellwether for new car sellers. ‘Concerns over diesel continue to dominate the statistics, with sales dropping a quarter. The “diesel bad” narrative is over-simplistic. Consumers need clarity on what the future plans are around diesel regulation, so they can make an informed decision about which vehicle is right for them.’ James Hind, chief executive and founder of Carwow, said: ‘There is still so much confusion in regards to the future of diesel. There is a continued clear trend for consumers looking for petrol cars over diesel cars. As a result, there are lots of diesel cars in stock that have great offers. ‘However, until there is greater guidance from the government on diesel and plans for the future electric car charging infrastructure, the industry will continue to face pressures.’
Top
Most-improved manufacturers in February Dacia
+138%
Porsche +108% McLaren +100% MG
+67%
Mitsubishi +45%
5
Bottom
Worst-performing manufacturers in February DS
-56%
Nissan
-54%
Infiniti -50% Lotus
-50%
Aston Martin -42%
‘Brexiety’ – the phenomenon that’s making people hang on to their cash THE CAUSE of February’s dip in new car sales is ‘Brexiety’, according to Auto Trader. The chief operating officer at the online marketplace, Nathan Coe, said: ‘The expected dip in new car registrations continues to reflect the serious decline in diesel sales and the broader UK economic environment. This is further compounded by the uncertainty car buyers have 96 | CarDealerMag.co.uk
over Brexit. You could call it Brexiety I suppose! ‘It will be used cars that provide the most interesting opportunity in 2018. In the past five years, the number of cars less than four years old listed for sale on Auto Trader has increased by a third, providing people on a wide range of budgets the opportunity to change into a newer, cleaner and better specced vehicle.’
Chris Bosworth, director of strategy at Close Brothers Motor Finance, said: ‘February is traditionally a quiet month for new car sales, as consumers hold out for the new registration plates which are released in March. ‘Coupling this with the market challenges that the motor industry faced over the last year, these figures don’t come as a surprise.’