New car sales in the UK declined for the fifth month in a row in August, with diesel registrations falling by more than a fifth amid ongoing concerns over air quality. According to the Society of Motor Manufacturers and Traders (SMMT), 76,433 new cars were registered last month, a drop of 6.4% compared to August last year.
Diesel car sales were particularly hard hit, plunging by 21.3%. In response, several major carmakers including Volkswagen, Toyota, Ford, Vauxhall and Renault have launched trade-in and scrappage deals for UK buyers, which could boost sales in September.
The SMMT noted that about 1.64 million new cars have been sold so far in 2017, down 2.4% from the same period last year. Chief executive Mike Hawes said: 'August is typically a quiet month for the new car market as consumers and businesses delay purchases until the arrival of the new number plate in September.'
Sales to private buyers fell 9.9% in August year-on-year, while fleet sales dropped 3.2%. Samuel Tombs of Pantheon Microeconomics commented: 'August's sharp fall in private registrations shows why dealers have suddenly launched scrappage schemes.' However, he expressed scepticism about their long-term impact, noting that many owners of old cars might not afford monthly repayments and that low consumer confidence and a weak pound suggest the mid-2010s boom in car sales has ended.
