SMMT Chief Executive Mike Hawes
“With the rush to register new cars and avoid VED tax rises before the end of March, as well as fewer selling days due to the later Easter, April was always going to be much slower.”
He said demand was expected to stabilise over the year “as the turbulence created by these tax changes decreases”.
The SMMT has as of now cautioned that 2017 is relied upon to see a business decay as value rises encourage through, after a record number of new vehicles left showrooms in 2016.
Howard Archer, boss UK and European financial analyst, said the figures recommended March deals blast could have been a “last hurrah” for the market – notwithstanding taking into account the twisting in the figures brought about by assessment changes.
“The extent of Aprl’s drop reinforces belief that the car sector is going to find life ever more challenging in the UK over the coming months. Consumers’ purchasing power is now being squeezed markedly by higher inflation and muted wage growth and it is likely that the squeeze will become tighter still.”
