New data revealed on Monday that the UK new car market declined in 2019 as a result of general political and economic turmoil.
The Society of Motor Manufacturers and Traders revealed that UK new car registrations dropped by 2.4% last year to 2.3 million.
Annual registrations declined for the third consecutive year.
The trade association said that this was caused by “weak business and consumer confidence, general political and economic instability and confusion over clean air zones”.
Last year was a turbulent one for UK politics. With the Brexit extension delayed several times, an attempt to prorogue parliament and a general election all in one year, uncertainty dominated Britain’s political landscape.
Despite the yearly decline, the UK car market is still the second largest in the European Union, behind Germany.
“A third year of decline for the UK new car market is a significant concern for industry and the wider economy,” Mike Hawes, Chief Executive of the Society of Motor Manufacturers and Traders, commented on the data.
“Political and economic uncertainty, and confusing messages on clean air zones have taken their toll on buyer confidence, with demand for new cars at a six-year low,” the Chief Executive continued.
“A stalling market will hinder industry’s ability to meet stringent new CO2 targets and, importantly, undermine wider environmental goals. We urgently need more supportive policies: investment in infrastructure; broader measures to encourage uptake of the latest, low and zero emission cars; and long term purchase incentives to put the UK at the forefront of this technological shift.”
Mike Hawes continued: “Industry is playing its part with a raft of exciting new models in 2020 and compelling offers but consumers will only respond if economic confidence is strong and the technology affordable.”
Petrol cars saw a modest growth of 2.2%, but this did not offset the 21.8% decline in diesel registrations. The Society of Motor Manufacturers and Traders said that anti-diesel rhetoric and confusion over clean air zones impacted demand.
