British new car sales grew at the slowest rate among major European markets during September, according to figures from the Society of Motor Manufacturers and Traders.
UK sales rose 1.3 per cent to 343,255 compared to the same month a year earlier, when sales fell by a fifth because of a new testing regime that meant many vehicles were not on sale.
However September’s meagre rise was lower than the double-digit increases seen in France, Germany, Spain and Italy, which were also affected by last year’s September rule change.
During the month, France rose 17 per cent, Germany rose 22 per cent, Spain rose 18 per cent and Italy rose 13 per cent.
“We expected to see a more significant increase in September, similar to those seen in France, Germany, Italy and Spain,” said SMMT chief executive Mike Hawes.
“Instead, consumer confidence is being undermined by political and economic uncertainty. We need to restore stability to the market which means avoiding a no- deal Brexit and, moreover, agreeing a future relationship with the EU that avoids tariffs and barriers that could increase prices and reduce buyer choice.”
During the past nine months, UK car sales have fallen 2.5 per cent, while last months’ small rise was still the second lowest September since 2011.
“The clear impression remains that consumers are currently cautious in making the major big-ticket purchase of a car amid major uncertainties despite further recent improvement in purchasing power and elevated employment,” said Howard Archer at EY ITEM Club.
“Brexit developments on October 31 and beyond will obviously have a major impact on the outlook for the car sector — and it has been, and remains, particularly vociferous about the damage that would come from a no-deal UK exit from the EU.”
Ian Plummer, director at online marketplace Auto Trader, said: “The natural slowdown of the market and continued Brexit anxiety will be weighing heavily on the minds of consumers, brands and retailers.”
Within the month, diesel sales continued to fall, dropping 20 per cent to 77,510, while petrol, which emits a quarter more CO2 than diesel, rose 4.5 per cent to 224,828.
Sales of electric and hybrid cars rose, with 7,710 battery-only cars sold, around 2.2 per cent of the market.
The Tesla Model 3, which was the third highest selling model during August, fell out of the top ten new car models, as traditional best-sellers recovered after a slow summer.
September traditionally sees a spike in sales because of the new number plate.
