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July 2018 new car registrations stable as Alternative Fuel Vehicles hit record share

The UK new car market remained stable in July, with year-on-year demand growing by 1.2%, according to the latest figures released today by the Society of Motor Manufacturers and Traders (SMMT).
July 2018 new car registrations sees AFVs on the rise
Plugging in: more drivers are moving to electrification reports the SMMT

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8 August 2018

  • New car market steadies in July, up 1.2%, with 163,898 new cars registered
  • Demand for hybrid and plug-in ULEV vehicles hits record levels
  • Year-to-date market down -5.5%, in line with SMMT expectations
  • Nearly 1.5m cars registered in first seven months

ALTERNATIVE Fuel Vehicles (AFVs) reached a market high – 6.5% market share as the July new car market remained stable.

Latest figures from the Society of Motor Manufacturers and Traders (SMMT) said 163,898 new cars were registered.

July 2018 and YTD cars

But if AFVs did well – enjoying a 21% surge – diesel continued to fall by nearly 25%. Petrol demand grew by over 20%.

Large fleet demand was up 2.6% in contrast to business registrations (-10.2%);   demand from private buyers was up by 0.1% on the same month in 2017.

Mike Hawes, SMMT Chief Executive, commented:

“The feel-good factor from a sun and sport-packed July, combined with some fantastic deals on a raft of exciting new models, clearly helped keep showrooms relatively busy last month.

July 2018 best-sellers cars

“It’s great to see alternatively fuelled vehicles benefiting from this growth, and government’s acknowledgement of the vital role new-tech diesel will play in its Road to Zero strategy should help more even more motorists benefit from the latest, safest and low emission technology over the coming months.”

Ian Gilmartin, Head of Retail & Wholesale at Barclays Corporate Banking, said:

 “1.2% doesn’t sound like a big increase, but the return to growth for the new car market in July is significant and will provide some much-needed reassurance to the industry.

“The fall posted in June will have ruffled a few feathers and it’s not easy to secure sales when soaking up the sun or watching the football might seem like a more attractive way for potential buyers to use their spare time, so this immediate return to form should provide a real shot in the arm for the sector as we begin the run-in to September’s plate change.”

However, Ashley Barnett, Head of Consultancy at Lex Autolease was more circumspect:

July registrations 2002 to 2018

“Businesses and consumers need to be able to make confident, informed choices, particularly if we are to meet the targets set out in the Government’s recent Road to Zero strategy.  In order for 50% of new car sales to be Ultra Low Emission by 2030, we will need to see an additional 100k new AFV registrations each year between now and then.

“We expect registrations of new AFVs to keep gathering pace in the coming months and are supporting customers with the switch to electric vehicles if suitable, but more needs to be done to increase their appeal and ease of use for drivers.”

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Nick Sharpe

Nick Sharpe

Nick Sharpe is an automotive content writer for Business Motoring

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