Press releases

Deloitte comments on SMMT new car registration figures

5 December 2019

Michael Woodward, UK automotive lead, Deloitte, said:

“New car sales fell -1.3% compared to the same time last year, with year to date sales down -2.7%.

“While diesel sales continued to decline (-27.2%), alternatively fuelled vehicles including hybrids and pure battery electric vehicles (BEVs) grew their market share to a record 10.2%, with BEVs alone growing sales by 228.8% year-on-year.

“After significant investment in the technology by manufacturers, the growth of BEVs is welcomed in the industry. Demand for BEVs is also expected to accelerate when 0% company car tax rates on zero-emission vehicles are likely introduced in April 2020. However, this level of growth presents a number of challenges as we enter a new decade. Not only is significant investment required in the UKs charging infrastructure, but as BEVs continue to grow, the long term implications for tax revenues are unclear.”

End

Notes to editors

A combination of company car tax, vehicle excise duty and fuel duties delivered over £35 billion in revenues in the 2018/2019 tax year.

Deloitte analysis suggests that the losses in tax revenue could be as much as £2.5 billion over the next three years, with losses of £1.2 billion in 2022 alone, based on estimated EV growth.

About Deloitte
In this press release references to “Deloitte” are references to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”) a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity.

Please see deloitte.com/about for a detailed description of the legal structure of DTTL and its member firms.

Deloitte LLP is a subsidiary of Deloitte NSE LLP, which is a member firm of DTTL, and is among the UK's leading professional services firms.

The information contained in this press release is correct at the time of going to press.

For more information, please visit www.deloitte.co.uk

Member of Deloitte Touche Tohmatsu Limited

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