Data from the Society of Motor Manufacturers and Traders (SMMT) has revealed that new car registrations in the UK last year were down to their lowest level since 2013.
The decline in new car registrations in the UK in 2019 was the third consecutive year of decrease for the country and the SMMT forecasts this trend to carry over in 2020. The group attributes this to weak consumer confidence and confusion over clean-air legislation.
According to the SMMT, the automobile industry is facing serious challenges in trying to adapt to the new emissions legislation. The organization pointed out that the new legislation will force a large increase in the use of electric and hybrid cars.
However, SMMT chief executive Mike Hawes argued that the impact following Brexit remains to be the biggest "clear and present danger" to the industry in the UK.
SMMT figures indicate that in 2019, a total of 2.31 million new cars were registered in the country, falling by 2.4% from the previous year. Since its highest record of 2.69 million vehicle registrations in 2016, the automobile market has been constantly contracting.
One factor for this was the decrease in demand for diesel-powered cars, which fell by 22% compared with 2018. Diesel-powered cars used to comprise around half of the new cars sold but they currently make up just a quarter of the market.
SMMT claims that uncertainty over future air quality rules, and in particular over potential restrictions on diesel vehicles entering city centers, has caused confusion among consumers.
Hawes said: "You can never put it down to one single factor. It has been a perfect storm over the past few years. It's really no surprise the market has been declining. That's why we need a return of confidence and strong economic conditions."
The group expects no improvement in the market this year as it forecasts an additional 1.6% fall in registrations in 2020.
