NOT unexpectedly – given it’s the month before the new reg plate – the new car market dipped in February.

Figures released by the Society of Motor Manufacturers and Traders (SMMT) reported that 80,805 new cars were registered. This is a -2.8% drop compared with February 2017.

If the market dipped, the continuing upward demand for petrol and alternatively fuelled vehicles (AFVs) did not.

Petrol demand rose in February, up 14.4%; AFVs rose 7.2%.

Registrations of new diesel cars declined -23.5%.

The SMMT noted this was a disappointing performance saying the latest low emission vehicles could help address air quality issues.

So far this year, the UK new car market has declined -5.1%.

The SMMT said that business registrations had declined the most and were down -29.8%. followed by private -7.1% and fleet sale -2.1%.

Meanwhile, double digit growth for petrol and AFVs has been unable to offset the move away from diesel, which now commands a 35.6% market share. The discrepancy in demand suggests diesel car owners are keeping their older cars for longer said the SMMT.

February’s new car market in brief

• 80,805 new cars driven off forecourts in the month, -2.8% down on 2017, as UK new car market dips.
• Demand for petrol and alternatively fuelled vehicles continues to rise, but diesel demand falls again.
• Year-to-date market for new cars down -5.1%, with 244,420 units registered nationwide.

Mike Hawes, SMMT Chief Executive, said:

“Although the new car market has dipped, it remains at a good level despite the drop in demand for diesel. Consumers should be reassured, however, that the latest cars are the cleanest in history and can help address air quality issues, which is why they are exempt from any restrictions.

“Looking ahead to the crucial number plate change month of March, we expect a further softening, given March 2017 was a record as registrations were pulled forward to avoid VED changes.”

What’s the leasing view on February’s new car market?

Ashley Barnett, Head of Consultancy at Lex Autolease, said:

“Ongoing noise around diesel continues to cause confusion in the marketplace, so it’s not surprising to see new vehicle registrations are down. Continued economic uncertainty is also delaying some businesses and consumers from making decisions around future vehicle replacement.

“Higher taxes and Clean Air Zones could be discouraging the use of diesel cars and driving a shift towards petrol, as some consumers remain undecided on the suitability of alternative fuels for their needs.

“However, many of the very latest diesel vehicles can emit lower levels of greenhouse gases than their petrol counterparts and should continue to have an important role for a large proportion of vehicle users.

“According to the SMMT’s New Car CO2 Report, the average CO2 emissions figure for new cars rose in 2017 for the first time in 19 years, which could be an unintended consequence of the push against diesel over the past 12 months or so.

“Our message to business car managers and individual drivers is to stay focused on getting the right vehicle for the right job, and to seek expert advice when considering a shift in vehicle fleet policy or choosing a new car.”