Plunging Demand For Diesel Vehicles Triggers First UK Car Sales Drop For Six Years

New car sales in the UK fell for the first time in six years in 2017 as demand for diesel cars plunged by nearly a fifth, according to industry data.

In its latest assessment of the market, industry body Society of Motor Manufacturers and Traders (SMMT) said Friday (5 January) that there were around 2.5 million cars registered, down 5.6% from 2016.

However, diesel sales fell a massive 17% as higher taxation and pollution fears put off buyers.

Mike Hawes, chief executive of the SMMT, said he expected car sales to continue to drop this year, predicting a 5 to 7% decline.

"But we need to put it into context. This was still the third best year in a decade and the sixth best ever."

Hawes added that worries about the future of diesel, following high profile emissions scandals had fuelled the backlash against diesel cars.

November's Budget also introduced a levy on new diesel cars that failed to meet the latest emissions standards. The one-off tax increase - which comes into effect in April - would be applied to most new diesel vehciles.

But Hawes countered that for many drivers diesel was still "the best bet because they can save a lot of money and indeed have a lower C02 emission".

"The backlash against diesel has made it far harder for us - and the government to meet our climate change targets," he concluded.

RECENT NEWS

Global Fund Groups Set To Hit $200tn

Global fund groups set to hit $200tn in assets by 2030, says PwCThe global fund management industry is expected to reach... Read more

Underperform And Report To Office: AHL's Struggles Trigger Policy Shift At Man Group

Man Group, one of the world’s largest hedge funds, has ordered staff at its flagship systematic trading unit AHL to re... Read more

Asia's Quiet Hedge Fund Star: Arrowpoint Rides Tariff Waves To Strong Gains

While some hedge funds chase headlines and media attention, others prefer to let performance speak for itself. Arrowpoin... Read more

China's Contrarian Hedge Fund Star Bags 1,485% Return

In a year when many global investors remained wary of China’s turbulent markets, one homegrown hedge fund has delivere... Read more

Beyond The Black Box: How Hedge Funds Are Systematically Embedding AI Into Core Operations

Artificial intelligence (AI) has long been discussed in hedge fund circles as a powerful but opaque tool—useful in the... Read more

Hedge Funds Rebuild Long Positions In Oil

Brent Crude Rally Gains Momentum After Diplomatic Thaw Hedge funds have significantly increased their bullish bets on B... Read more