The UK new car market declined in 2019, with annual registrations falling for the third consecutive year, according to figures released by the SMMT.
2,311,140 units were registered last year, representing a -2.4 per cent decline as the turbulent market reacted to weak business and consumer confidence, general political and economic instability, and confusion over clean air zones.
The annual decline was driven primarily by falling private demand, with registrations from consumers down -3.2 per cent, while the small volume business market also fell, down -34.4 per cent.
Demand fell across nearly all vehicle segments, with only the dual purpose and specialist sports categories experiencing growth.
These was modest growth in demand for petrol cars, up 2.2 per cent, but this was not enough to offset the significant -21.8 per cent decline in diesel registrations.
Bucking the overall trend, combined alternatively fuelled vehicle registrations surged in 2019, to take a record 7.4 per cent market share.
Hybrid electric vehicles continued to dominate this sector, with registration increasing 17.1 per cent, to 97,850 units.
Battery electric vehicle registrations experienced the biggest percentage growth, rising 144.0 per cent to 37,850 units, and overtaking plug-in hybrids for the first time.
While the huge increase in battery electric vehicle is welcome, the 1.6 per cent market share is still tiny and underlines the progress needed to reach the 50 to 70 per cent share the government envisages in the next ten years.
This ambition has not been helped by the significant decline of zero emission-capable plug-in hybrids, down 17.8 per cent, further evidence of the consequences of prematurely removing upfront purchase incentives before the market is ready.
Mike Hawes, SMMT Chief Executive, said: “A third year of decline for the UK new car market is a significant concern for industry and the wider economy. 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.”
“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, including 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.”
“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.”