New car sales have started 2019 the same way as last year, according to the SMMT figures for Q1, with a drop in new registrations. While the number of new cars sold in March held up relative to a year ago, the quarterly total of 16,676 was still down 3% (524 fewer vehicle sales) below the corresponding quarter in 2018.
Car sales stuck in reverse
One of the trends that we have been seeing in car sales is motorists shunning diesel vehicles for petrol and plug-in versions. But while consumer behaviour is changing in response to the eventual phasing out of diesel cars, we are also seeing overall sales volumes continuing to follow a downward trend. This highlights a lack of consumer confidence which in turn reflects a squeeze on household incomes. In short, new car sales have been in a state of managed decline over the last two years, and this appears to be continuing. Continue reading
New car sales traditionally provide a useful barometer of consumer confidence. In recent months, however, interpreting the figures requires a degree of caution given the significant volatility, in the car sales. Tax changes, the weather and the timing of Easter have all affected the volume of new cars sold and the annual growth rates over the last 12-15 months. This ‘noise’ can misrepresent the genuine underlying trends.