Sales of new cars in the UK dropped for the fifth month in row throughout August, with demand for diesel vehicles plunging more than a fifth.
There were 76,433 new car registration in August, the Society of Motor Manufacturers and Traders (SMMT) stated.
The figure was 6.4% low from August in 2016, where as diesel sales – which have been hit by concerns over air quality – dropped by 21.3%.
A number of automakes have actually introduced trade-in and scrappage offers for UK customers.
Volkswagen, Toyota, Ford, Vauxhall and Renault are among those significant automakers that have launched schemes recently, which could increase sales throughout September.
The SMMT stated about 1.64 million new cars had been sold in this year so far, down 2.4% from 2016.
SMMT CEO Mike Hawes stated: “August is generally a quiet month for the new car market as consumers and businesses delay purchases up until the arrival of the new number plate in September.”
“With the new 67-plate now available and a variety of new models in showrooms, we prepare for the extension of what are historically high levels of demand,” Hawes added.
Sales to private buyers dropped 9.9% in August from a year previously, while fleet sales dropped 3.2%.
“August’s sharp fall in private registrations reveals why dealers have all of a sudden released scrappage schemes,” stated Samuel Tombs of Pantheon Microeconomics.
However, he was sceptical if the schemes would have any long-lasting effect.
“In theory, these monetary incentives could stem the downward pattern in sales. However in most cases, the scrappage schemes change discounts that were available to all purchasers, and numerous owners of old cars might not have the ability to afford the monthly payments for a new vehicle.
“Scrappage schemes may turbocharge sales for some of the months, but low consumer confidence and degrading cost due to the weak pound suggest that the mid-2010s boom in car sales has run out of mileage.”
