Despite 2016 being a tumultuous year for the UK, which voted to leave the European Union and saw a change of leadership, car registrations numbers hit an all time high of almost 2.7 million. The figure was released by the country’s Society of Motor Manufacturers and Traders (SMMT) and reported by Autocar.
Last year’s total registrations were 2.2% higher than the previous record of 2.6 million cars, set in 2015. Prior to that, the record stood at 2.58 million units, from 2003.
“Consumer confidence has remained strong despite a number of challenges for the industry, economy and politically, over the past year. That has combined with low interest rates and a raft of new model and new technology launches to deliver more choice of better vehicles than ever,” SMMT CEO Mark Hawes explained.
He however warned that the market would likely soften by around 5-6% this year as a result of uncertain trading conditions sparked by Brexit negotiations, volatile currency exchange rates, a possible interest rate rise and the impact of upcoming Vehicle Excise Duty (VED) changes. The latter will remove incentives to buy some low-emission cars and add taxes to cars costing over £40,000.
“Registrations of around 2.5m would still be extremely strong when put in context – we are not talking about a dramatic drop-off. The truth is there’s a latent demand built up from 2011 after several tough years during the recession, and we expect that to lose some of its momentum in the year ahead,” Hawes said.
According to sales data, sales growth was the strongest in supermini (B-segment) and SUV classes, as well as for the premium brands. What went down was traditional hatchbacks from mainstream brands (VW Golf and its kind) as sales went to SUVs. Figures show that while more diesel cars were registered last year than in 2015, the market share of oil burners fell. Sales of alternative fuel vehicles were up 22% year-on-year for a 3.31% market share.
Not being part of the EU would mean no more access to the single market, and SMMT has previously said that this could add around £1,500 to the price of the average car. “Obviously we hope it won’t happen, but it is an indication of what’s at stake to the car industry and I think the government understands that. Such a price rise would have a profound impact, were it to come about,” Hawes said.
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I would said auto industrry in UK healthy and fair…!
this what happens when cars are cheap and gomen don’t own the car companies like in Malaysia. There is healthy competition. People can buy new cars and replace old cars easily to safer cars.
UK population only 60 million people. Malaysia is 32 million people.
Yet car sales are many times more than Malaysia.
When will our cars become cheap?
Kinda like pre-GST here, when pipu stock up in cars 1st (esp contis).
Consumers dont know yet what type of hell they are going to be in, when the EU finally signs off the UKs departure from EU. Economists estimate that the drop in UKs GDP will enable France, Russia and India to overtake UK as world’s bigger economies. Currently UK is at 5th place, but might drop to 8th place after the exit.
UK market becoming less important. Case in point, VW Golf is best selling car in Europe in 2016, with far larger sales, despite UK consumers buying more SUVs.
The good point about car industry in UK is it is an open market. 8 years ago proton persona was selling at 13k while a similar spec ford focus and VW golf about 15k. If u work as bank officer earning 2k a month the car is affordable. Not so good thing in UK, car depreciation is heavy. Parts are relatively cheap but labour is expensive. Wheel alignment is about 100 pound or 500 ringgit our money. Every thing is subjected to VAT, which is their GST and rated higher than ours. Petrol is cheap by their standards and varies according region. Even supermarket like tesco is selling petrol. Personal income tax is also high, and the higher u earn the more you contribute. If u earn 20k pound a month, expect a 40% deduction for tax.
Agreed. And theres no subsidies, no BRIM, only unemployment benefits and the taxpayers r paying for it. They have national healthcare, but quality is worse than crap cuz migrant workers can use too. Theres no tolls, but theres congestion charge in big cities, and parking charge is worse than KLCC.
With EU being decoupled, England will want to tax on non-GB made cars. So England is copying their former colony automotive policy.
Looks more like the people in UK are buying cars in anticipation of Vehicle Excise Duty (VED) which will result in higher price of car if Briton impose VED.
an opportunity missed for Proton….