Brexit Chills UK Car Sales in First September Drop Since 2011

Brexit Chills UK Car Sales in First September Drop Since 2011”

Sales were hurt by business and political uncertainty as Britain prepares to leave the European Union and confusion over government plans on diesel and petrol cars, which could include new levies or restrictions, the Society of Motor Manufacturers and Traders (SMMT) said.

Some 2.07 million new cars have been registered so far this year, a decrease of 3.9% on the same period in 2016.

Meanwhile, demand from private buyers fell 8.8 per cent on previous year, while demand from business buyers declined 5.2 per cent and fleet buyers fell 10.1 per cent.

Electric auto sales continued their good momentum, with alternatively fuelled vehicle sales accelerating 41.0% in the month and 34.6% year-to-date, with almost 95,000 leaving forecourts this year.

The figure was down 9.3% from September past year, while diesel sales - which have been hit by worries over air quality - fell by 21.7%.

Mike Hawes, the SMMT chief executive, said: "September is always a barometer of the health of the United Kingdom new auto market so this decline will cause considerable concern". Business and political uncertainty is decreasing buyer confidence, with customers and organizations more likely to delay big ticket purchases.

The SMMT said economic and political uncertainty, as well as confusion over air quality plans, had led to a fall in consumer confidence. Manufacturers' scrappage plans are becoming popular and such schemes are to be encouraged given fleet renewal is the ideal way to deal with environmental issues in our towns and cities, Hawes added. Sales of diesel cars crashed by 21.7% in September.

"In seasonally-adjusted terms, however, we estimate that registrations were 9.7% higher in [the third quarter] than [the second quarter], when sales were hit by April's increase in vehicle excise duty".

Sales of alternatively fuelled cars carry on growing despite the drop in the overall market, but they were still at very low levels - just 22,628 sold, a market share of 5.3 per cent.

Howard Archer, chief economist at consultancy EY ITEM Club, said the decline in fleet demand, which accounts for around half of all vehicle demand, was of particular concern.

"The Bank of England has shown mounting concern over this and is keen for a more responsible approach to be adapted".

After two successive quarters of decline in auto sales, noted Alex Buttle of vehicle buying comparison website Motorway, the UK's new vehicle market is officially in recession.

Among the measures local authorities are being asked to consider is the introduction of clean air zones, which would ultimately restrict the movement of more polluting vehicles in areas impacted by poor air quality, and could see drivers paying to use some roads. "It feels like this combination of negative forces will keep kicking the market hard when it's already on the floor".

Like this


05 October 2017
Dharmendra urges States to slash Value-Added Tax on Petrol, Diesel
"The Finance Minister will soon be writing to all the states on slashing VAT levied on petrol and diesel", he added. Expenditure on petrol and diesel has 6.84 percent weight in the CPI (consumer price index) basket.

05 October 2017
Catalan President Lives Outside Law: Spain's Deputy Prime Minister
One would have expected the King to call for political dialogue in his address, recognising that tensions were high. But no official voting roll has been published and there is no independent electoral commission.

05 October 2017
Trump Addresses Las Vegas Massacre: Though We Feel Anger, Love Defines Us
Stephen Craig Paddock opened fire from a high perch late Sunday, leaving at least 58 people dead and more than 500 wounded. As candidate, Donald Trump supported gun owners' rights and received backing from the National Rifle Association .

05 October 2017
Carroll says Cliff Avril's neck injury could be 'longer-term' issue
Avril's chin appeared to be hit by Brissett's foot and his head snapped back. "Could be, yeah. It's no small wonder that Rees Odhiambo practiced, and fully, on Wednesday.

05 October 2017
Kim Makes Lewd Jokes On Kanye West Over Instagram
She said: "I'd go blonde for that D.". "And, like, for people to think that's OK, it's just so frustrating". Her older sister Khloé was clearly amused by the post and commented: "You're sooooo obsessed with that D".

05 October 2017
Leopard enters the Maruti Suzuki plant in Manesar
Although the morning shift has been scrapped, around 2000 employees are waiting near the factory to begin their shift. Gurugram: The production came to a halt as unwanted guest arrived to the astonishment of one and all.

05 October 2017
Teva Pharmaceutical Industries Limited (TEVA) Receives $28.89 Consensus Target Price from Brokerages
On September 11 the stock rating was upgraded from "Equal-Weight" to "Buy" and a price target of $24.00 was set by BTIG Research. The company reported $0.99 earnings per share for the quarter, missing the Zacks' consensus estimate of $1.06 by ($0.07).

05 October 2017
Colorado Legislature at odds as tax fix special session opens
Senate President Kevin Grantham, R-Cañon City, issued a release critical of Hickenlooper's call for a special session. Gardner thinks the special session has only driven his party farther apart from Democrats and the governor.

05 October 2017
Baxter International Inc (BAX) Position Lowered by Everett Harris & Co. CA
It has outperformed by 1.73% the S&P500. 3,760 shares valued at $210,146 were sold by Shapazian Carole J on Tuesday, May 9. Douglass Winthrop Advisors Ltd Liability Co invested 0.03% of its portfolio in Baxter International Inc (NYSE:BAX).

05 October 2017
Islamic State group: Iraqi army claims recapture of Hawija
The UN's humanitarian affairs office said the number of people still in the town was unknown but could be up to 78,000. Hawija is located some 240 kilometers north of Baghdad and 50 kilometers to the west of Kirkuk.