Decrease in car registrations for fleet and business in July
It has been revealed that there were 90, 847 new car registered to fleet and business in July 2019 (which is the most recent data for car registrations), with this representing a 5.5% decline for the same period last year (where 96,161 were sold in July 2018).
But what does this mean, does it represent an overall trend when it comes to car registrations? And what has been causing a decline in numbers? As a fleet insurance company, we decided to investigate further.
An overall decrease in car registrations
Not only has there been a decline in the number of vehicles that had been registered to fleet and business last month, but there has also been a reduction year-to-date. There has been a 4% fall in car registrations for the first seven months of 2019 (accounting for 792,004 of car registrations) compared to 823, 169 units registered in the first seven months last year.
Why has there been a decrease in car registrations?
There are a number of factors that have been thought to contribute to the decline in new cars being registered for fleet and business purposes. According to the Society of Motor Manufacturers and Traders (SMMT), they believe that political and economic uncertainty (caused by the ongoing talks about Brexit and its outcome) as well as a lack of clarity as to what the future Government policy will be on fuel types. Both of these factors have led both consumer and business confidence to fall.
Increase in zero-emission vehicles
Whilst car registrations are falling, there is some good news to keep in mind, especially for fleet companies. For example, the same report showed that there has been a sharp increase in the demand for battery electric vehicles in the UK, by a whopping 158.1%, representing a 1.4% market share.
This could lead buyers to continue to invest in new cleaner vehicles, providing that the government provides clarity on their environmental policy in the years to come.
Increase in electric vehicles?
It is anticipated that by 2021 in the UK, there will be an increase in the number of car manufacturers who will invest in electric vehicle development and will focus more on introducing these types of car to fleet and business sales.
What’s more, in an analysis recently published by Deloitte, it is anticipated that this will also be the point when electric vehicles will become less expensive than petrol or diesel vehicles.
This will make electric cars more appealing for firms, who may be currently unable or potentially unwilling to move to electric cars.
In addition, with over 62% of firms supporting a move to using electric car models, this is likely to help incentivise the Government to make greener vehicles purchases more advantageous for business fleet owners, especially with a greater focus on the environmental policy being something of importance to the UK government.