Record half year for UK car sector but shadow of Brexit looms over the industry
DEMAND for new cars grew 3.2% in the first half of this year, with a record 1,420,636 registrations between January and June – the best half-year performance ever recorded.
Whether this performance can be sustained post EU referendum is still unclear, the sector’s leading trade body has said.
However, the Society of Motor Manufacturers and Traders (SMMT) said it was important the government did everything it could to restore confidence in the critically important sector.
The SMMT said growth was reported across all fuel types, with diesel and petrol registrations growing 2.3% and 3.0% respectively in the year-to-date.
Alternatively fuelled vehicles (AFVs), meanwhile, continued the significant gains seen over previous months, up 21.3% compared with the first six months of 2015. AFVs now account for 3.2% of the overall new car market.
Despite the record performance, demand in June eased slightly, with a -0.8% fall in registrations.
The SMMT said this reflected expectations that market growth would stabilise following a record 2015. Fleet registrations continued the trend of recent months, driving the market with a 4.5% rise and compensating for a -4.5% drop in private registrations.
Mike Hawes, SMMT chief executive, said, “It is far too soon to determine whether the (EU) referendum result has had an impact on the new car market.
“The first six months saw strong demand at record levels but the market undoubtedly cooled over the second quarter. It’s important government takes every measure to restore business and economic confidence to avoid the market contracting in the coming months.”
