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

Trade War Turbulence Tests Limits Of Computer-Driven Hedge Funds

The escalating trade conflict between the United States and China has delivered a blow not just to global supply chains ... Read more

The New Systemic Giants: Are Hedge Funds The Next Financial Shock Trigger?

Hedge funds, once considered niche and opaque investment vehicles operating on the margins of finance, have grown into v... Read more

Unwinding The Trade: How Hedge Funds Triggered The Treasury Rout

The mechanics behind a leveraged arbitrage strategy and its role in market instability A sharp sell-off in US Treasurie... Read more

When The Machines Falter: Renaissance And The Limits Of Quant Strategies

How Political Turbulence Exposed Structural Weaknesses in Algorithmic Trading Renaissance Technologies, one of the most... Read more

Inside The Fear Trade: How Hedge Funds And Banks Are Bracing For A Breakdown

Despite relative calm in equity indices and credit spreads, a rising number of institutional investors believe markets a... Read more

Margin Pressure Mounts: Hedge Funds Face Liquidity Crunch

A wave of steep margin calls has swept through the hedge fund industry as global financial markets experience renewed vo... Read more