UK car sales drop despite increase across EU

car sales hastings

The UK has posted a drop in new car registrations by 3.5 percent, despite the 5.2 percent increase across the EU last month.

The European Automobile Manufacturers Association (ACEA) found that new car registrations in the EU last month totalled 1.6 million vehicles.

Demand in Spain was up by 10.1 per cent. In France and Germany, there were increases of 4.7 percent and 2.9 percent respectively.

The ACEA has said that the “strong performance of the new EU member states is worth highlighting.”

Earlier this month, the Society of Motor Manufacturers and Traders (SMMT) said that sales fell by 6.3 percent compared to the same period last year.

Ian Gilmartin, the head of retail & wholesale at Barclays Corporate Banking, was not surprised by the UK figures.

“The industry has rightly been more vocal in recent weeks, with the lack of clarity around what the playing field will look like for the motor market post-Brexit growing. Patience is running out for both manufacturers and retailers, with all parts of the industry hoping to see some material progress to allow them to plan for the future,” he said.

Car manufacturers in the UK are threatening to move operations to the EU following Brexit in March 2019.

“A bad Brexit deal would cost Jaguar Land Rover more than £1.2 billion profit each year,” said the chief executive Ralf Speth, who has argued for more clarity from the government regarding future trade post-Brexit.

“As a result, we would have to drastically adjust our spending profile. We have spent around £50 billion in the UK in the past five years, with plans for a further £80 billion more in the next five. This would be in jeopardy should we be faced with the wrong outcome.”

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Safiya Bashir
Safiya focuses on business and political stories for UK Investor Magazine. Her interests include international development, travel and politics.