The new car market declined by -4.6% reflecting a slowdown in consumer spending in May. In May, new passenger car registrations declined by -4.6% with 183,724 units registered. Sales of petrol cars rose by 1.0%, diesel was down -18.3% and alternative fuel vehicles continued to take market share up a further 11.7%. Private demand declined by -5.0% and fleet by -3.0%.

The continued decline in new vehicle sales reflects the current political and economic environment. Consumers will continue delaying decisions on major investments such as new vehicles until we have greater clarity.

Pleasingly, despite the decline in new vehicle sales the used car market continues to perform strongly demonstrating that the consumer still has options when it comes to purchasing vehicles. Franchised retailers continue to benefit from the growing used vehicle market and the associated aftersales segment.

We will continue to support franchised retailers through this unprecedented period of political uncertainty and continue to call on the government to provide clarity for the UK automotive sector.

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