Deloitte comments on SMMT new car registration figures
5 August 2019
Michael Woodward, UK automotive lead, Deloitte, said:
“Car sales declined by 4.1% this month compared to the same time last year, making it the lowest July sales since 2012.
“Whilst there are a number of factors impacting the latest sales figures, uncertainty surrounding Brexit is impacting both fleet and business sales, down -4.7% and -22.5% respectively. Deloitte’s latest CFO survey revealed businesses are pausing investment, and the decline in business sales is part of this wider trend.
“For consumers, however, the growth of battery electric vehicles continues. Sales were up 158% month-on-month, with the sector expected to increase its market share significantly over the next few years. Recent announcements on company car tax included a clear incentive to support the adoption of zero emission cars from 2020.
“Car manufacturers are investing significantly in electric vehicle development and the new focus on introducing them to fleet and business sales will be welcomed.
“Alongside government incentives, the total cost of owning and running an electric vehicle continues to fall. Deloitte analysis predicts a tipping point will be achieved in the UK by 2021, when electric vehicles are expected to become cheaper than their diesel and petrol counterparts.
“For those consumers and businesses either unable or unwilling to make the leap to electric, we are seeing hybrid electric vehicles as a stepping stone, as sales jumped 34% compared to June.”
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