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The new car market continues to perform in line with expectations, down -6.3% in January. On the used vehicle side, franchised retailers continue to see a buoyant market, which is worth over £65 billion a year.

In January 2018, new passenger car registrations in the UK were down by 6.3% to 163,615 units. Alternative fuel vehicles saw an encouraging growth of 23.9% to 9,020 units and a market share of 5.5%. Sales of petrol cars rose by 8.5% while diesel saw a decline of -25.6%. SUVs saw a significant 6.6% increase and reached a record market share.

The sector performed extremely well in last year’s first quarter thanks to a number of factors including the new vehicle excise duty which came into force in April which explains this correction in the market.

The alternative fuel vehicle market continues to grow, up 23.9% in January. The increase in petrol sales indicates that many motorists are switching fuel type from diesel to petrol, although depending on the type of driver Euro 6 modern diesel may still represent the most efficient option.

Going forward, it is critical that consumers are supported by consistent, clear information to help them make informed purchasing decisions.

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Posted by Sue Robinson on 09/02/2018