New car demand falls in January

New car registrations fell by 11.5% to 128,811 units in January, according to the Society of Motor Manufacturers and Traders (SMMT).

The decline was on par with SMMT’s forecast and, in part, reflects the loss of the Scrappage Incentive Scheme (SIS).

The market share for cars with CO2 emissions under 100g/km continues to increase, rising by over 65% in January.

Average new car CO2 emissions were 141.5g/km in January, compared with an average of 144.2g/km in 2010.

Paul Everitt, SMMT Chief Executive, said: “New car registrations fell by 11.5% in January. This is in line with SMMT forecasts and marks the beginning of a challenging year for the UK motor industry.

“Consumer confidence is low and it is important that government uses the March Budget to help relieve some of the financial pressure on motorists by freezing fuel duty, while providing stability and certainty on motoring taxes. Despite the challenging conditions, the demand for low CO2 emitting and highly fuel efficient cars continues to grow.”