Blogs/Vlogs

SMMT reports on 2017 and looks forward to the year ahead

5 January 2018

Motor industry body, the Society of Motor Manufacturers and Traders (SMMT) have today released information on the total of new car registrations during 2017, revealing the first decline in registrations since 2011. New car registrations fell by 5.7% during 2017, with the biggest decrease seen in new diesel sales which fell by 17.1% in the year.

Diesel car sales fell rapidly in December, following the November announcement of an April 2018 tax increase for cars that don’t meet strict emissions standards. The decline in diesel registrations is obviously a large contributing factor to the year’s decline in new registrations.

There are a number of reasons responsible for the downward swing during 2017, including

  • Consumers’ confusion over the future and costs of diesel vehicles;
  • Uncertainty over the UK’s Brexit negotiations.

However, SMMT CEO Mike Hawes reminded the industry that 2017 followed two years of record highs in vehicle registrations saying "We need to put it into context. This was still the third best year in a decade and the sixth best ever".

SMMT have also published a forecast for 2018 – with the news not looking much better for the industry in the year ahead. The prediction is that new car sales will decline by a further 5% - 7% on last year. Mr Hawes also issued a warning that manufacturers will need clarity on a Brexit deal by the end of the first quarter of the year, stating that without it his members will need to start implementing contingency plans. “Production is a tap that takes a long time to turn on and off,” he said – highlighting the March 2019 date when the UK will leave the EU.

Even with a further decline in new car sales in 2018, the year is predicted to be the sixth strongest since records began in the 1950s. It is worth noting that of the 2.5 million new registrations in 2017, only 13,500 were fully battery-electric, indicating the size of the battle ahead for those manufacturers and the reduction of emissions targets.

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