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[Ferro-Alloys.com] The UK car sector slowed in August, with car registrations falling on the year after rebounding in July, despite a boost in zero-emission capable vehicle demand.

 

New car registrations dropped by 5.8pc on the year in July to 87,226 units, according to the Society of Motor Manufacturing and Traders (SMMT). Auto sales across the first eight months were down by 39.7pc to 915,615 units, mostly driven by the impacts of the two-month Covid-19 lockdown.

 

The UK car sector rebounded in July with registrations growing by 11.3pc on an annual basis to 174,885 as pent-up demand and special offers incentivised consumers to purchase on the first full month of dealerships reopening across the UK. Car dealerships in England were allowed to reopen on 1 June, but those in the devolved nations of Wales, Scotland and Northern Ireland opened much later in the month.

 

"The decline is disappointing, following some brief optimism in July. However, given August is typically one the new car market's quietest months, it is important not to draw too many conclusions from these figures alone," SMMT chief executive Mike Hawes said.

 

"With the all-important plate change month just around the corner, September is likely to provide a better barometer. As the nation takes steps to return to normality, protecting consumer confidence will be critical to driving a recovery."

 

Demand for electric and hybrid vehicles in August increased following the release of new models into the market, SMMT said.

 

Sales of battery electric, plug-in hybrid electric and hybrid electric vehicles rose by 74.2pc on the year to 14,053 units, while sales of mild hybrid electric vehicles climbed by 218.9pc to 9,501 units.

 

The market share of zero-emission capable vehicles has grown in the UK, as the combined share of electric, hybrid and mild hybrid vehicles in the UK rose to 22.9pc of the UK car market across the first eight months of the year, up from 8.9pc a year earlier.

 

In Europe, the market share of electric vehicles rose in the second quarter to 7.2pc, up from 2.4pc in the same period last year.

 

SMMT made calls for binding targets on charging infrastructure development and long-term commitments to incentivise the purchase of zero-emission capable vehicles to further accelerate demand in the UK.

 

Source: Argusnedia

 

 

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