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Gloucestershire Business News

Diesel car sales plunge

Diesel car sales fell by a third on last year's figures during October.

Diesel suffered its biggest hit yet, with demand down 29.9 per cent, amidst continuing consumer confusion over the future of diesel vehicles.

And overall new car sales were down 12 per cent, the seventh consecutive month of declines, according to the Society of Motor Manufacturers and Traders (SMMT).

Now the SMMT is calling on clarity from the government on its position on diesel vehicles.

Mike Hawes, SMMT Chief Executive, said: "Declining business and consumer confidence is undoubtedly affecting demand in the new car market but this is being compounded by confusion over government policy on diesel. Consumers need urgent reassurance that the latest, low emission diesel cars on sale will not face any bans, charges or other restrictions, anywhere in the UK. We urge the government to use the forthcoming Autumn Budget to restore stability to the market, encouraging the purchase of the latest low emission vehicles as fleet renewal is the fastest and most effective way of addressing air quality concerns."

But Alex Buttle from car buying comparison website Motorway.co.uk wonders if it's time to stop focusing on diesel and concentrate instead on growing areas of the industry.

"Diesel's market share is plummeting and consumers aren't listening to rhetoric about cleaner diesel models, however much the industry drums on about it. The damage has been done.

"While it's understandable the SMMT is urging the government to act to reassure consumers that new diesel cars will be 'safe' from toxin tax punishment, is this a lost cause? Maybe it's time focus is shifted towards giving attractive tax incentives for purchasing alternative fuel vehicles to encourage growth in this area.

"Consumers are showing huge interest in eco-friendly cars and it's reflected in new registrations. AFVs are the future of the car industry and the government need to adapt to changing times if it has any interest in keeping the new car market buoyant."

Declines were seen across all sectors, with business and fleet demand down 26.8 per cent and 13 per cent respectively. Meanwhile, dealers reported 10.1 per cent fewer private buyers taking delivery of new cars in the month.

Alternatively Fuelled Vehicle (AFV) demand continued to rise, up 36.9 per cent to 8,244 registrations, while petrol models enjoyed a more modest growth of 2.7 per cent. However, these gains were unable to offset the heavy losses in the diesel segment.

The overall market is down 4.6 per cent on 2016 levels, with 2,224,603 cars registered in the first 10 months.

The biggest selling car in October, and so far this year, is the Ford Fiesta, with 83,070 sales in 2017.

What do you think? Has diesel had its day? Email mark@moosemarketingandpr.co.uk 

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