The UK new car market declined by -6.8 per cent in 2018, with annual registrations falling for a second year to 2,367,147 units, according to figures released by the Society of Motor Manufacturers and Traders (SMMT).
A -5.5 per cent decline in December capped a turbulent year of model changes, regulatory upheaval and continued anti-diesel policies, adding to the ongoing decline in consumer and business confidence.
Private, fleet and business registrations all fell in 2018, with the biggest losses felt in the fleet sector, while private motorists and smaller business operators registered -6.4 per cent and -5.6 per cent fewer new cars respectively.
The biggest volume decline was seen in the diesel sector, down -29.6 per cent in 2018, with the volume loss equivalent to some 180 per cent of the overall market’s decline.
Anti-diesel rhetoric and negative fiscal measures took their toll, with December marking the 21st consecutive month of decline for the fuel type – despite new emissions tests showing diesels deliver in the real world.
Growth in registrations of petrol and alternatively fuelled vehicles replaced some of the loss but not enough to offset the full shortfall as many diesel owners adopt a ‘wait and see’ approach, keeping hold of their older, more polluting vehicles for longer.
In the AFV sector, petrol electric hybrids remained the most popular choice, up +21.3 per cent to 81,156 units.
Plug-in hybrids (PHEVs) also recorded a strong uplift (+24.9 per cent) over the year, though the figures suggest growth is slowing following the removal of the Government’s plug-in car grant for these vehicles in October.
Demand for PHEVs grew almost 30 per cent in the first ten months, but year on year increases fell to 3.1 per cent and 8.7 per cent in November and December respectively.
Pure electric cars, meanwhile, grew 13.8 per cent in the year but, with just 15,474 registered, they still make up only 0.7 per cent of the market.
Mike Hawes, SMMT chief executive, said: “A second year of substantial decline is a major concern, as falling consumer confidence, confusing fiscal and policy messages and shortages due to regulatory changes have combined to create a highly turbulent market.
“The industry is facing ever-tougher environmental targets against a backdrop of political and economic uncertainty that is weakening demand so these figures should act as a wake-up call for policy makers.
“Supportive, not punitive measures are needed to grow sales, because replacing older cars with new technologies, whether diesel, petrol, hybrid or plug-in, is good for the environment, the consumer, the industry and the exchequer.”
Best selling cars of 2018
- Ford Fiesta
- Volkswagen Golf
- Nissan Corsa
- Nissan Qashqai
- Ford Focus
- Volkswagen Polo
- MINI
- Mercedes-Benz A Class
- Ford Kuga
- Kia Sportage
More than 80 exciting new generation models – 31 of them plug-in electrics – are set to make their showroom debuts in 2019.