Brexit Chills U.K. Car Sales in First September Drop Since 2011

by Dramelin 5:00 AM 0 comments

Traffic travels along the M25 motorway in this aerial photograph taken near Upminster, U.
car demand tumbled 9.
3 percent in September, the first decline in the key sales month since 2011, as uncertainty over Brexit and concerns about diesel sapped consumer confidence.
With the drop in September, new-car registrations have slumped for the sixth straight month, the U.
’s Society of Motor Manufacturers and Traders said Thursday in a statement.
Sales through the first nine months of 2017 declined 3.
“September is always a barometer of the health of the U.
new-car market, so this decline will cause considerable concern,” said SMMT Chief Executive Mike Hawes in the statement.
“Business and political uncertainty is reducing buyer confidence, with consumers and businesses more likely to delay big-ticket purchases.
is Europe’s second-largest car market and weakening British demand could have a ripple effect across the region, where auto sales are recovering from the sovereign debt crisis.
The September figures are telling because British dealers usually anticipate a rush to secure new license plates, which can help resale value.
Economists see Britain’s planned exit from the European Union potentially hurting the economy, including the car and retail industries.
Diesel Decline In the aftermath of Volkswagen AG’s emissions-cheating scandal, diesel models were particularly hard hit, with sales plunging 22 percent as buyers worry about potential driving bans due to smog-inducing nitrogen oxides.
That hurts environmental plans as the cars emit less carbon dioxide than similar gasoline models.
Even with a 41 percent jump in alternative-fuel vehicles, the diesel sales trend means average new-car CO2 levels could rise this year for the first time since records were kept, “thwarting the ambitions of both industry and government to meet challenging CO2 targets,” the SMMT said.
Adding to the uncertainty over diesel and the rocky negotiations over the U.
’s exit from the EU, some British car demand this year was pulled forward as buyers sought to avoid new emissions-based duties that went into effect in April.