A drop in the car sales for two years in UK motor industry is expected:

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Introduction:

A warning from the side of the Society of Motor Manufacturers and Traders has come out concerning Britain’s motor industry saying that it is going to experience a total 2-year fall in sales of about 11% in 2018. The trade body mentions that British car makers are pushing an agreement between EU and the UK by the end of the first quarter so that it can end the transitional phase of Brexit.

SMMT in this matter:

The figures from SMMT are clear that the new car sales have shown a total drop of 5.7% from the figures of 2016 in the UK. A drop of about 5 to 7 percent in the car sales has been forecasted for 2018. The reports are showing that this type of drop in car sales was not witnessed after 2009. Last year the drop in total car sales were reported as by 6.8% in private car sales, 7.7% for business purposes, a car bought for hire firms were dropped by 4.4%.

A potential threat has been found after this condition of the UK’s manufacturing base and if this situation is not handled with sooner then it will affect thousands of jobs, local communities and also millions of pound earned through exports of cars. This is also delaying the investment decisions. It is exactly what calls for a clarified agreement to deal this transition phase for the Uk and EU.
Mike Hawes, Chief Executive, Society of Motor Manufacturers and Traders

Drop in the diesel car sales:

SMMT has mentioned that in this confusing situation, consumers are “sitting on their hands” until this matter is resolved especially the matter including taxation.

A drop in the diesel car sales is also noticed with 31% in December 2017 from the same month of 2016. It is likely to increase the crisis that is being faced by the motor industry after the incidents like emission of Volkswagen for fixing affairs, the uncertainties of the office of policy towards diesel vehicles of the Government including fuel, tax, parking restrictions and extra congestion fees etc.

The problem worsens with environmental issues:

Chief executive of SMMT, Mike Hawes has mentioned that this “negativity” toward diesel should be stopped else it is going to affect the environment in worse possible ways. He says that to deal with this issue consumers are using much older and dirtier versions of diesel cars and not exchanging them with cleaner and up-to-date designs. This is worsening the CO2 pollution in the environment. “This is bad for the industry and bad for the environment,” he said.

In the same context, he had clearly rejected the idea of diesel scrapping. He said that there are definitely much better and cheaper ways available for gaining the same result like reducing congestion or the betterment of the traffic flow.

Chief executive of Society of Motor Manufacturers and Traders, Mike Hawes has mentioned that this “negativity” toward diesel should be stopped else it is going to affect the environment in worse possible ways.

The other side of this problem:

On the other hand, this issue has made an impact on the sales of alternative fuel vehicles. In 2017, sales of hybrid types of pure electric vehicles are up to 4.7%. In the meantime, Hawes is looking for an improvement and calls for “consistent support over infrastructure.” He also praised Chancellor for approving £400m in the Budget of last November for different types of new charging points.

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