Car Sales Drop 11% in U.K.

Deliveries of new cars in Britain fell 11% to 163,500 units in November, marking their eighth straight month of year-on-year shrinkage, the Society of Motor Manufacturers and Traders reports. The group says the decline is a “major concern.”

Demand for diesel-powered cars plunged 31% to 61,700 units for the month on consumer worries about government plans to eventually ban diesel vehicles. SMMT complains that the government’s decision to impose new taxes on the newest and cleanest diesel models will only discourage owners from trading in their older, more polluting cars.

Year-to-date sales in the U.K. fell 5% to 2.39 million vehicles last month. Overall diesel deliveries for the 11-month period dropped 16% to 1.01 million units, losing 5.6 points of market share.

Analysts blame Britain’s overall sales slump on stalled wage growth, rising inflation and concerns about the impact on the British economy of the country’s decision to exit the European Union in March 2019.