British car sales dip slightly; demand for electric models surges
Demand for electric cars powered ahead in January, data showed on Tuesday, as consumers continued to shift away from diesel models.
Overall, the UK new car market was 1.6% lower year-on-year in January, with 161,013 models leaving forecourts. Demand from business and fleet buyers was particularly weak, down 33.5% and 3.4% respectively, according to data from the Society of Motor Manufacturers and Traders.
But private buyers reversed December’s decline, with registrations up 2.9%, while demand for electric, plug-in hybrid and hybrid cars surged 26.3%.
Petrol car registrations rose 7.3%, while diesel sales slumped 20.3%. The best-selling car in January was the Ford Fiesta, followed by the Ford Focus and the Nissan Qashqai.
Mike Hawes, chief executive of the SMMT, said: “It’s encouraging to see car registrations in January broadly on par with a year ago, as the latest high-tech models and deals attracted buyers into showrooms.
“This, however, is still the fifth consecutive month of overall decline in the market. To restore momentum, we need supportive policies, not least on vehicle taxation, to encourage buyers to invest in new, cleaner vehicles that best suit their driving needs.”
Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said the 2.9% increase in private new car registrations was an improvement on the 6.3% average decline seen in 2018.
“The timing of the improvement is curious, given the recent fall in consumers’ confidence, though it may just be a matter of time before the renewed deterioration in sentiment hits car sales," he added.
“In the past, car sales have been one of the most sensitive components of consumers’ spending to changes in confidence. Uncertainty about the future taxation and resale value of diesel cars likely will continue to depress demand too.
“Nonetheless, car sales should see sustained growth in the second half of the year.”