UK car

UK car sales recovered slightly in February, rising 1.4%, offering some respite to an ailing car industry facing a host of challenges.

The Society of Motor Manufacturers and Traders (SMMT) said 81,969 new cars were registered in February, up 1.4% from a year earlier.

Nevertheless, diesel car sales continued to plummet, with sales down by 14% to 24,284 vehicles. Meanwhile, petrol car sales rose by 8% to 53,164.

However, the biggest growth in sales was for alternative fuel vehicles, up 34% to 4,521 in February, as consumers turn to more eco-friendly models.

Mike Hawes, SMMT chief executive, said: “It’s encouraging to see market growth in February, albeit marginal, especially for electrified models. Car makers have made huge commitments to bring to market an ever-increasing range of exciting zero and ultra low emission vehicles and give buyers greater choice.”

According to an analysis fo the result by EY, a key worry for the UK car industry is that the uncertainty of Brexit may deter buyers.

Earlier this year, Honda announced the closure of its Swindon plant in 2021, placing as many as 7,000 jobs under threat. One of the key reasons cited for the move was challenges in the car industry.

Howard Archer, chief economic advisor to the EY ITEM Club, commented:
“The Society of Motor Manufacturers and Traders (SMMT) reported that new UK car registrations rose 1.4% year-on-year in February to 81,969 vehicles, which was the first rise for six months. This followed a drop of 1.6% year-on-year in January, which had been the smallest drop since August.

“Consequently, new car sales were down a modest 0.6% year-on-year over the first two months of 2019 at 242,982 vehicles.”

 

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Nicole covers emerging global economic and political events for The UK Investor Magazine. Her focus is particularly upon company news and political developments in Europe and the US.