UK car sales expected to slump to eight-year low in 2020
Electric vehicles increased their market share by 135.6 per cent in 2019
The number of people buying new cars in the UK fell by 2.7 per cent in 2019 and is expected to fall to an eight-year low next year.
According to an article in The Times, the National Franchised Dealers Association (NFDA) predicts that new car sales will fall to 2.2m next year, representing a decline over the past four years of nearly 20 per cent.
Sue Robinson, Director NFDA , said the drop is partly due to a lack of consumer confidence when making investment decisions, as a result of ongoing economic uncertainty.
There has also been a 25 per cent decline in diesel car sales over the past five years, as the extent of air pollution has become evident.
However, it’s not all doom and gloom as electric vehicles increased their market share by 135.6 per cent . While this still only represents 1.5 per cent of the overall UK market the NFDA says it is likely to “increase rapidly” in 2020 as the new emission targets set by the EU for manufacturers come into force on the 1 January 2020.
This surge in demand could see some supply imbalances over the coming year, however, the NFDA said it is working with retailers to help them achieve Electric Vehicle Approved (EVA) status.
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“2019 has seen a monumental increase in the demand of electric vehicles,” said Robinson. “By monitoring consumer sentiment, and working with both the government and manufacturers, we continue to ensure that our members provide the best service possible to meet the new demand and understand the changing needs of the consumer.
“As a body, we feel prepared to manage the shifting opinion and environment of the industry and we will maintain our support of motor retailers as internal combustion engines are phased out and replaced with new electric vehicles.”
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