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.
"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.