A drop in sales of alternatively fuelled vehicles (AFVs) in June has been blamed on confused Government policy at a time when many company buyers are looking to switch to cleaner options and the Government itself has committed to a zero emissions route by 2050.
That’s the view from the Society of Motor Manufacturers and Traders (SMMT) after sales figures in June revealed an overall drop in AFVs for the first time in over two years, tied in to a continued decline in sales of diesel cars and a sustained rise in petrol engined models.
Figures from the SMMT for June showed a fall in company car registrations which mirrored that of the overall new car market, with year-on-year demand falling by 4.9% to 223,421 units. For the first six months of the year, the 1,269,245 new cars registered from January to June represent a fall of 3.4% on 2018’s figures.
The SMMT blames ongoing confusion over low emission zones and diesels, the removal of key ultra low emission vehicle incentives and an overall decline in buyer confidence as key factors that have affected the market.
Declines were seen across every vehicle segment, said the SMMT, except the Dual Purpose sector which grew by 9.1% in June and 7.3% year-to-date to take 22.6% of the market. However, Supermini remains the UK’s best-selling segment, making up 31% of all registrations in the first six months.
The month saw growth for petrol and battery electric registrations, up 3% and 61.7% respectively, but this was not enough to offset the continuing decline of diesel, which fell for the 27th month in a row and was down by over 20%.
Significantly, plug-in hybrid electric vehicles (PHEVs) continued the recent downward trend, falling by a massive 50.4%, while hybrids also fell, by 4.7%, a direct consequence of the Government’s removal of the Plug-in Car Grant for such vehicles last October, said the SMMT.
The poor performance by PHEVs tipped the overall alternatively fuelled vehicle sector into negative growth for the first time since April 2017, undermining efforts to reduce emissions through fleet renewal of the latest ultra low emission vehicles.
Mike Hawes, SMMT chief executive, said: “Another month of decline is worrying but the fact that sales of alternatively fuelled cars are going into reverse is a grave concern.
“Manufacturers have invested billions to bring these vehicles to market but their efforts are now being undermined by confusing policies and the premature removal of purchase incentives.
“If we are to see widespread uptake of these vehicles, which are an essential part of a smooth transition to zero emission transport, we need world-class, long-termincentives and substantial investment in infrastructure.
“Fleet renewal remains the quickest way to address environmental concerns today and consumers should have the confidence – and support – to choose the new car that best meets their driving needs, whatever the technology, secure in the knowledge that it is safer and cleaner than ever before.”
Mike Manners, managing director at CBVC, commented “It is certainly concerning that sales of AFVs have fallen as we are all supposed to be pushing towards a zero emissions future.
“However, sales of battery electric vehicles still remain at very low levels at just under 12,000 for the year to date, and Government needs to introduce further measures and incentives to encourage new car buyers to switch more widely to AFVs.”
He continued: “It’s clear that the decision to exclude many plug-in hybrid models from qualifying for the Plug-in Car Grant is having an impact. With the recent arrival of more plug-in models, reviewing policies and purchase incentives for all AFVs must be amongst Government priorities to get the market back on track.
“Fleet operators needs to have access to the right incentives to encourage drivers to get their older, more polluting vehicles off the road and invest in new AFVs and cleaner petrol and diesel models,” he said.”
