The first half of 2016 achieved a record 1,420,636 new car registrations. However the SMMT says the market is now levelling off after a 0.8% drop in the last month of trading.
June’s new car market saw a -4.5% drop in private registrations, a 4,842 unit decline, the third consecutive month of falling retail demand.
Fleet registrations were 4.5% or 6,134 units ahead, however business registrations were down 25% or 3,343 units.
The Society of Motor Manufacturers and Traders said growth was reported across all fuel types in the year-to-date, with diesel and petrol registrations growing 2.3% and 3.0% respectively.
Alternatively fuelled vehicles (AFVs), meanwhile, continued the significant gains seen over previous months, up 21.3% compared with the first six months of 2015.
AFVs now account for 3.2% of the overall new car market – 45,460 new cars this year.
Mike Hawes, SMMT chief executive, said, “It is far too soon to determine whether the referendum result has had an impact on the new car market. The first six months saw strong demand at record levels but the market undoubtedly cooled over the second quarter.
“It’s important government takes every measure to restore business and economic confidence to avoid the market contracting in the coming months.”
As editor, Tim is responsible for the media content, planning and production of AM's multiple channels (AM print and digital magazines, website, social media and contributing to our events planning). He interviews and writes about as many franchised dealer groups and UK divisions of motor manufacturers as possible, to explore the issues facing UK motor retail and understand what solutions dealers and suppliers are using to overcome these.
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