The number of new cars that were sold in May fell 8.5% compared to May 2016, with buyers more cautious in the run-up to the general election, the Society of Motor Manufacturers and Traders (SMMT) has said.
According to the SMMT, there were 186,265 new cars registered in May. But sales of electrical or hybrid cars rebounded after a fall in sales in April. They now have a record 4.4% market share in the UK, the largest it has ever been.
So far in 2017, around 1.1 million new cars have been registered, around 0.6% less than the previous year.
Chief Executive of SMMT, Mike Hawes said: “Although demand has fallen, it’s important to remember that the market remains at a very high level and with a rate of new models packed with the latest low-emission and connected technology coming to market this summer, we expect the market to remain strong over the year,”
Why the decline? – CamTrak – Accident Cameras
There are a couple of reasons why we have seen a considerable decline in the number of new cars registered in May, one of which we mentioned earlier – the run-up to the general election.
Another reason is that on 1 April the new Vehicle Exercise Duty (VED) came into force. Meaning that those considering purchasing a new car rushed to get it done before the 1st April. In March a record 562,337 new vehicles were registered as buyers rushed to beat the rise in VED.
“We expected demand in the new car market to remain negative in May due to the pull-forward to March,” Mr Hawes said.
“Added to this, the general election was always likely to give many pauses for thought and affect purchasing patterns in the short term.”
Over half of all vehicles sold in May were petrol driven, a slight increase on the previous year, whereas the sale of diesel cars had dropped by 20% from the previous year.
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