UK car sales crawl to record level after 66-plate change

A record number of new cars were sold in September, according to data from motor manufacturers, helped by demand for the new '66 plate'.

The Society of Motor Manufacturers (SMMT) revealed new car registrations were only a few short of 470,000 in September, a modest increase of 1.6% on the same month last year.

This was the highest ever sales in September, which is an important month for car sales as it is one of two months in the year when number plates change, and followed a 3.3% rise in August and a flat July.

Registrations of alternatively fuelled vehicles surged 32.6%, while diesel sales rose 2.8%, with demand for company car fleets up 7.3% as registrations to private motorists declined 1.7%.

Year-to-date total registrations grew 2.6%, lifting registrations so far this year to more than 2m, only the second time this mark has been passed in September since 2004.

"The new 66-plate, combined with a diverse range of exciting new models featuring the latest technology, has certainly helped draw buyers into showrooms and many are taking full advantage of the attractive deals and low interest financing options on offer," said SMMT chief executive Mike Hawes.

"However business and consumers place September orders many months in advance, so the ability of the market to maintain this record level of demand will depend on the ability of government to overcome political uncertainty and safeguard the conditions that underpin consumer appetite.”

Economist Howard Archer at IHS Markit said the 1.6% rise was "decent if unspectacular".

"Strong year-on-year growth in car sales are becoming ever harder to achieve as they are coming from a high base following extended healthy gains.

"There is also the possibility that September’s modest growth rate in car sales could be a sign that consumers are becoming more cautious about making major purchases such as a car due to heightened uncertainty following June’s Brexit vote."