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Despite expected stabilisation in July, UK new car registrations remain at levels not seen since 2004 with specific segments of the market, including alternative fuel vehicles continuing to perform well.
New car market increased slightly up 0.1% with 178,523 units registered. Positively, the total market year-to-date is still up 2.8% with 1,599,159 units. There has been growth in fleet of 4.7% in 2016 and 1.1% in private vehicle registrations.
These figures confirm that overall retail sales are going through a stabilisation period following a positive second quarter in which GDP grew by 0.6% with the services sector up 0.5%.
It is positive to see that alternative fuel vehicles sales remained strong up 24.7% in July, prompted by various benefits including low running costs, lower rates of Vehicle Excise Duty and financial support offered by the Government.
Many dealers have experienced an improvement on retail demand in July compared to the immediate post Brexit situation. The UK remains a large market for the EU and performance for the year ahead is expected to be in line with market expectations.