New Car Sales takes another dip but Hybrids and Electric Car Sales Rise
A recent set of figures from the Society of Motor Manufacturers & Traders has delivered a set of mixed results with car sales dipping again BUT seeing electric and hybrid vehicle sales increasing.
The car industry has seen a long period of increased car sales and growth however the recent months have seen a retracting of the mush enjoyed growth. The decline has been largely marked by the decreasing sales of Diesel cars as the Government continues to demonise diesels.
Octobers new registrations came in at 153,599, 3% lower than that of October 2017. This also leads to the number of new car sales registered in the first 10 months of the year will be down over 7% when compared to new registrations made in the first 10 months of last year.
Rise of the Electric & Hybrids
As the government hits out at diesel cars with increased taxation and city use charges, their sales have declined dramatically. With the new figures, Diesel cars account for only a third of new car sales. This is a huge decline from the 50% it claimed not long ago.
Electric and Hybrid cars now claims 7% of the market. However, pure electric car sales have increased by 87% last year, this does though still only equate to 0.5% of the market with 584 in total sales.
What’s on the Horizon for Motor Traders then?
As diesel car sales wane and electric and hybrid sales increase, the dynamic of the forecourt will soon rapidly change. Having said that, petrol cars will still prove to be the majority of all car sales.
New cars are also becoming more reliable which means the repair garages will start to see less and less cars that need repair and more simply service and maintenance requirements.
The combustion engine now though does have a lifespan, a lifespan that is sadly getting shorter bought on by the popularity of electric cars helped by government schemes (long live the sound of the V8).
The entire dynamic of the motor traders industry is changing and so will other aspects such as traders insurance need to change with it.
It is not all bad for the combustion engine though. There has been a series of testing backlogs and supply shortages on new cars which could have contributed to the electric car sales.
Combined with this, the government is starting to roll back it’s incentives to buy electric cars which will have caused a rush to buy while the incentives are still available.
Taking into consideration these 2 factors will give a bit of a ‘false positive’ on electric cars sales. Diesel though, sadly, does continue to decline regardless.