Cars Sales in U.K. Drop 6%
Sales of new cars in the U.K. fell an estimated 6% to 2.5 million units in 2017, according to the Society of Motor Manufacturers and Traders.
Sales of new cars in the U.K. fell an estimated 6% to 2.5 million units in 2017, according to the Society of Motor Manufacturers and Traders.
The year-on-year decline is the first in six years and reverses two consecutive years of record high volumes. Even so, last year’s volume represents the British car market’s third-best sales year ever. SMMT will follow up on its preliminary assessment with more definitive data later.
CEO Mike Hawes tells reporters the British market is likely to shrink by another 5%-7% this year. He blames the downturn on continuing confusion about the government’s diesel policies, coupled with weakening business and consumer confidence linked to the U.K.’s impending exit from the European Union.
Diesel sales in the U.K. plummeted by roughly one-third last month after the government announced a tax increase on almost all diesels and additional levies on older models that don’t meet current emission standards. Diesel sales for the full year fell 17%.