LONDON- Since 2013, car sales in Britain last year fell to its lowest yet amidst diesel vehicle restrictions and Brexit-related economic uncertainty.
Being Europe’s second-largest new vehicle market, Britain’s figures from last year show that households have become more cautious regarding their expenses despite rising wages and lower unemployment rates.
Last year, there was a drop in new car registrations by 2% to 2.31 million.
It is apparent that consumer confidence on purchasing big-ticket items is still weak.
There is also a reluctance to buy diesel vehicles after Volkswagen’s emissions scandal and restrictions on older diesel vehicles in city centres, thereby affecting demand.
Brexit is a huge cause of concern for the industry, with the 10% tariff risk on car imports and exports in 2021 if the post-Brexit trade deal cannot be negotiated by Johnson before then with the EU.
The tariff will make British car production uneconomic and this risk has caused the stalling on investment plans for many manufacturers.
Another problem for the industry is the tougher environmental rules. Post-Brexit, in 2021, Britain has to stick with EU plans to fine automobile manufacturers emitting over 95 grams of CO2 per kilometre travelled.
(Photos syndicated via Reuters)
This story has been edited by BH staff and is published from a syndicated field.
