UK passenger car registrations grow 10.4 percent in April
The UK passenger car market's registrations rose for the first time in a year during April, up by 10.4% y/y.
IHS Markit perspective
- Implications: A number of factors have come into play this month to achieve this improvement, including two additional working days and the a slump following changes to VED a year ago.
- Outlook: Despite this gain, many of the factors that have been a drag on the market for the past year remain, and as such IHS Markit anticipates that passenger car registrations will fall by 4.3% y/y during 2018 before retreating again in 2019.
The UK passenger car market has made its first gain for 12 months during April. According to data published by the Society of Motor Manufacturers and Traders (SMMT), registrations increased by 10.4% year on year (y/y) to 167,911 units. The main area of growth came from private buyers; their registrations increased by 26.3% y/y to 75,607 units, while fleet customers made a more marginal 0.9% y/y improvement to 87,486 units. However, demand from business customers was down by 12.95 y/y to 4,818 units.
However, the improvement in top-line registrations this month has done little to boost its year to date (YTD) performance, particularly considering the significant falls recorded in the big volume month of March. As a result, it is now down by 8.8% y/y to 886,400 units.
IHS Markit currently anticipates little let-up in the decline with a fall in passenger car sales of 4.3% y/y forecast to 2.43 million units.
Furthermore, we see additional falls taking place in 2019, before an upswing begins in 2020.
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