UK new car sales fall 8.5 pct in May ahead of election

Published Jun 5, 2017

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London - British new car registrations

fell 8.5 percent last month, an industry body said on Monday,

blaming the decline on the run-up to this week's national

election and the effect of an April tax hike which boosted

demand earlier in the year.

Car sales dropped to 186,265 vehicles in May, with a 14

percent slump in demand to consumers and a 5.3 percent drop in

fleet business registrations, according to data from the Society

of Motor Manufacturers and Traders (SMMT).

"We expected demand in the new car market to remain negative

in May due to the pull-forward to March," SMMT Chief Executive

Mike Hawes said, referring to a rise in vehicle excise duty

which boosted demand before it came into effect in April.

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"Added to this, the general election was always likely to

give many pause for thought and affect purchasing patterns in

the short term," he said.

Demand for diesel continued to fall last month with demand

down 20 percent, as a series of tax hikes in London and possible

levies in other cities continued to dampen demand. 

Reuters

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