Sales of new cars in the UK fell last month, according to industry data highlighting the stubborn difficulties manufacturers and showrooms across Europe are facing.
The Society of Motor Manufacturers and Traders (SMMT) reported a 1.3% decline in August compared to the same month in 2023, with 84,575 new cars sold.
“Heavy” summer discounting continued to drive electric vehicle (EV) sales, the industry body said, rising almost 11%.
But the SMMT warned that much would depend on the “critical” current month, which sees the release of the new 74 number plates.
It reiterated its plea for more government aid to help drive EV sales.
The outlook remains challenging for manufacturers globally due to weak demand from a wealth of headwinds including continued constraints on consumer finances at a time of heavy investment in EV technology.
Pressures facing Europe’s car manufacturers, including those in the UK, mount up to one of a lack of competitiveness – especially in the face of cheaper EVs from China.
High energy prices and wages are just two of the imbalances, with the European Union imposing additional tariffs on Chinese-made EVs on the grounds that their lower prices points are the result of state subsidies.
The shift towards electric cars is also being hampered by caution among buyers over electric vehicle ranges and a lack of infrastructure to support the vehicles.
A major stumbling block has always been prices, with electric cars remaining more expensive generally than a comparable model powered by petrol or diesel.
SMMT chief executive Mike Hawes said on Thursday: “August’s EV growth is welcome, but it’s always a very low volume month and so subject to distortions ahead of September’s number plate change.
There were signs this week that the pressure is beginning to take its toll, as manufacturers across Europe demand greater government support to help the battle against climate change through the transition to EVs.
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