The Society of Motor Manufacturers & Traders (SMMT) has revealed new car sales to fall in October.
Though sales slightly recovered from the month previously, sales are continuing to fall about 3% year on year.
Figures improved from last month, where September faced a 20.5% decline.
Mike Hawes, SMMT chief executive, said:
“[Vehicle tax] upheaval, regulatory changes and confusion over diesel have all made their mark on the market this year so it’s good to see plug-in registrations buck the trend. Demand is still far from the levels needed to offset losses elsewhere, however, and is making government’s decision to remove purchase incentives even more baffling.”
“We’ve always said that world-class ambitions require world-class incentives and, even before the cuts to the grant, those ambitions were challenging. We need policies that encourage rather than confuse.”
“Government’s forthcoming review of the Worldwide Harmonised Light Vehicle Test Procedure’s (WLTP’s) impact on taxation must ensure that buyers of the latest, cleanest cars are not unfairly penalised else we will see older, more polluting cars remain on the road for longer,” he added.
Manufacturers have expressed concern over Brexit uncertainty, with Jaguar Land Rover blaming weakening global demand for the decision to pause production in the Solihull plant.
Last week the car manufacturer said that car sales had fallen sharply, taking it into a loss for the three months to October.
The group made a pre-tax loss of £90 million for the most recent quarter. This is compared to a profit for the same period last year.
Hybrid and plug-in registrations increased by 30.7%, however, government cuts to electric car grants make it difficult to predict future growth.
James Fairclough, who is the chief executive of AA Cars (LON: AA), said: “If the government really does want to see the wider take-up of alternative fuelled vehicles, it needs to make sure it doesn’t pull the plug out from under this burgeoning sector by removing incentives before they have a chance to properly bed-in.”
“What’s really needed to encourage growth in the electric vehicle sector is a rapid increase in the number of public chargers as the AA’s own research suggests this is one of the greatest barriers to EV ownership.”