New car registrations at lowest level since 2013
New car registrations in the UK last year fell to their lowest level since 2013, according to the Society of Motor Manufacturers and Traders (SMMT).
It was the third consecutive year of decline, and the SMMT expects that trend to continue in 2020.
The SMMT said 2,311,140 units were registered last year, representing a -2.4% decline as the turbulent market reacted to weak business and consumer confidence, general political and economic instability and confusion over clean air zones.
The annual decline was driven primarily by falling private demand, with registrations from consumers down -3.2%, while the small volume business market also fell, down -34.4%.
Fleet registrations, meanwhile, remained broadly stable, up +0.8%. Demand fell across nearly all vehicle segments, with only the dual purpose and specialist sports categories experiencing growth, up +12.0% and +19.2% respectively.
Despite registrations of superminis and lower medium cars falling (by -6.0% and -4.0% respectively), these smaller vehicles remain the most popular – with a combined 57.1% market share.
There was modest growth in demand for petrol cars, up +2.2%. However, this was not enough to offset the significant -21.8% decline in diesel registrations. December marked the 33rd month of diesel decline, as continued anti-diesel rhetoric and confusion over clean air zones hit demand. This has resulted in drivers keeping their older, more polluting vehicles on the road for longer, holding back progress towards environmental goals.
Bucking the overall trend, combined alternatively fuelled vehicle (AFV) registrations surged in 2019 to take a record 7.4% market share. Hybrid electric vehicles (HEVs) continued to dominate this sector, with registrations increasing +17.1% to 97,850 units. Battery electric vehicle (BEV) registrations experienced the biggest percentage growth, rising +144.0% to 37,850 units and overtaking plug-in hybrids for the first time.
Mike Hawes, SMMT chief executive, said: “A third year of decline for the UK new car market is a significant concern for industry and the wider economy. Political and economic uncertainty, and confusing messages on clean air zones have taken their toll on buyer confidence, with demand for new cars at a six-year low.
“A stalling market will hinder industry’s ability to meet stringent new CO2 targets and, importantly, undermine wider environmental goals. We urgently need more supportive policies: investment in infrastructure; broader measures to encourage uptake of the latest, low and zero emission cars; and long term purchase incentives to put the UK at the forefront of this technological shift. Industry is playing its part with a raft of exciting new models in 2020 and compelling offers but consumers will only respond if economic confidence is strong and the technology affordable.”
