UK new car registrations down after Brexit
Only the second fall in 4 years according to SMMT report
- Society chief says it is too soon to tell whether the drop was triggered by UK's decision to leave
- Britain opted to abandon the EU leading to economic uncertainty in much of Europe
Updated : 14:29
The quantity of new cars registered in the United Kingdom decreased for just the second time in four years last month after ongoing political and economic uncertainty caused by the decision to leave the European Union.
The data was released by the Society of Motor Manufacturers and Traders, showing the total number of newly registered cars as 0.8% lower than the same period last year.
The fall was recorded around the same time as the Brexit vote took place at the end of June.
The data was released by the Society of Motor Manufacturers and Traders
Chief Executive of the SMMT Mike Hawes said it was "far too soon to determine whether the referendum result has had an impact on the new car market".
He added "The first six months saw strong demand at record levels but the market undoubtedly cooled over the second quarter."
The market showed a 3.2% growth overall in the first half of the year with 1,420,636 cars registered.
"It's important Government takes every measure to restore business and economic confidence to avoid the market contracting in the coming months."
The only other time that the number of newly registered cars experienced a fall was during the Volkswagen emissions candal of October 2015, as consumer confidence in the industry faltered.
Ratings agency Fitch said on Tuesday that there would probably be a decline in British new vehicle sales due to slower economic growth and weaker consumer confidence.