U.K. Tax Change Cuts Car Sales 20%

New-car registrations in the U.K. plunged 20% to 152,100 units in April as a steeper vehicle excise tax took effect, the Society of Motor Manufacturers and Traders reports. Last month also had fewer selling days because of the later Easter holiday.

Some of April’s volume was pulled into March by the impending tax change, leaving sales through the first quarter of 2017 up 1% at 972,100 units. The trade group predicts a return to more stable demand in the months ahead.

SMMT notes that registrations of light commercial vehicles also fell last month, dropping 19% to 22,600 units.