Dismal start for UK new car market in 2020

The UK new car market declined -7.3% in the first month of 2020, according to figures published by the Society of Motor Manufacturers and Traders (SMMT) on February 5. The SMMT represents more than 800 automotive companies in the UK.

Private and fleet demand was down -13.9% and -2.2%, respectively during the period.

In January 2020, as many as 149,279 vehicles left showrooms, as continued confusion surrounding diesel and clean air zones and ongoing weak consumer and business confidence continue to affect demand, the SMMT data stated.

Registrations of battery-electric cars continue to grow, with a year-on-year uplift of 2,720 units, as plug-in hybrids and hybrids also enjoy record demand.

Industry calls for an extensive package of incentives to accelerated match 2035 zero-emission transport ambitions – including a long-term commitment to the Plug-in Car Grant.

“Consumer confidence is not returning to the market and will not be helped by government’s decision to add further confusion and instability by moving the goalposts on the end of the sale of internal combustion engine cars,” said Mike Hawes, SMMT Chief Executive.

“While ambition is understandable, as we must address climate change and air quality concerns, blanket bans do not help short-term consumer confidence. To be successful, the government must lead the transition with an extensive and appropriately funded package of fiscal incentives, policies and investment to drive demand.”

‘Dirty diesel’

Registrations of new diesel cars fell for the 34th month, by -36.0% to record the weakest performance since 2000 and just 19.8% share of the market, while petrol demand also declined, by -9.5%, SMMT data said.

Interestingly, Hybrid electric cars (HEVs) increased by +20.6%, with 8,941 hitting British roads, and plug-in hybrid electric vehicle (PHEV) demand more than doubled, up +111.1% to 4,788 units.

Battery electric vehicle (BEV) registrations, meanwhile, continued to surge, up 203.9% to 4,054 units and a 2.7% market share.

Combined, alternatively fuelled vehicle registrations reached 11.9% of the market in January – the highest on record, up from 6.8% in the same month last year.