UK Sept new vehicle registrations crash by 20%

UK vehicle registrations fell by a massive 20.5% in September, as new emissions testing requirements hit supply, according to figures released on Thursday by the Society of Motor Manufacturers and Traders (SMMT).

It said 338,834 vehicles were registered in the month, down around 87,000 year on year.

The impact was felt across the board, with registrations by private consumers, fleets and businesses all declining, by -20.1%, -22.4% and -6.3% respectively. Registrations of petrol and diesel cars also fell, while hybrids and plug-in electrics fared better, up a modest 3.9%, the SMMT added.

The introduction of the Worldwide Harmonised Light Vehicle Test Procedure in the wake the the Volkswagen emissions scandal has caused a bottleneck in supply. Every new car must go through the testing process, which shows how much fuel it consumes and the level of emissions, before it can be sold.

“With the industry given barely a year to reapprove the entire European model line-up, it’s no surprise that we’ve seen bottlenecks and a squeeze on supply. These are exceptional circumstances with similar declines seen in other major European markets,” said SMMT chief executive Mike Hawes.

Chief UK economist at Pantheon Macroeconomics Samuel Tombs said while the emissions test impact may have been an aberration the underlying sales trend "remains flat at best".

"Car dealers rushed to pre-register stock in August—registration rose by 24.7% year-over-year—in order to circumvent the new standards. That said, registrations in August and September combined were down by 13.8%—September is a much more important month for sales, due to the semi-annual number plate change—suggesting that the underlying trend in demand remains downward," he said.