Uncertainty impacts new car market as decline in diesel registrations continues

July 11, 2018
Posted by: majid

The decline in diesel new car registrations continued in June, with the Society of Motor Manufacturers and Traders (SMMT) reporting a 28.2% fall compared to June 2017.

Year-to-date, the picture is even starker, with 613,985 diesel registrations in the first half of last year compared to 428,612 units this year – a 30.2% fall. Petrol and alternative fuel vehicles (AFVs) benefitted, up by 11.4% and 24.2% respectively.

Fleet and business registrations also show a decline. There were 140,251 fleet and business registrations last month, compared to 148,157 in June 2017 – a 5% fall.

Year-to-date, there have been 726,738 fleet and business registrations compared to 784,170 in the first six months of 2017 – a 7.5% fall.

Overall, year-on-year demand fell by 3.5%. Demand from larger fleets fell by 6.4%, but business buyers with fewer than 25 vehicles on their books returned to showrooms, registering an 11.3% uplift in demand after an 11-month long hiatus. Private demand was largely flat, down by 0.6%.

Smaller cars remained most popular, with Supermini and Lower Medium vehicles taking a combined 57.4% market share. However, Dual Purpose was the fastest growing segment, with demand up by some 16.4% – 6,710 more than in the same month last year. Dual Purpose, Executive (+4.3%) and Luxury Saloon (+1.3%) were the only segments to register growth in June.