UK new car sales fall in January as industry condemns 2035 ban
The number of UK new car sales fell 7.3 per cent at the start of 2020, according to industry figures released today.
Sales of new diesel cars plummeted 36 per cent year on year in January, their worst performance in 20 years, statistics released by the Society of Motor Manufacturers and Traders (SMMT) showed.
And petrol car sales also sank 9.5 per cent.
The decline was not universal, however, as the SMMT data also showed registration of alternatively fuelled vehicles, including hybrid, plug-in hybrid and fully electric cars, increased 6.8 per cent compared to January 2019.
Hybrid electric car sales jumped 20.6 per cent as almost 9,000 vehicles hit UK roads, while battery electric vehicles soared 204 per cent to 4,054 units.
In response, SMMT chief Mike Hawes, said: “The new car market is a key driver of the UK’s overall economy, so another month of decline is unsettling,” SMMT chief Mike Hawes said.
The government brought forward a ban on sales of new petrol, diesel and hybrid vehicles from 2040 to 2035 yesterday.
The car sector criticised the decision yesterday and today the SMMT demanded clarity on how the government would support the industry.
“Consumer confidence is not returning to the market and will not be helped by government’s decision to add further confusion and instability by moving the goalposts,” Hawes said.
“Blanket bans do not help short-term consumer confidence. To be successful, government must lead the transition with an extensive and appropriately funded package of fiscal incentives, policies and investment to drive demand.”
Michael Woodward, Deloitte’s automotive sector expert, questioned the government’s decision to include hybrid vehicles in the ban.
“Hybrids have traditionally been seen as a stepping-stone to battery electric vehicles. However, with their ban from 2035 putting them in the same category as higher polluting diesel and petrol cars, the question is whether the consumer will continue to see the same benefit in moving to hybrid in the interim?” he asked.