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New car sales fall again in October, say manufacturers

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"Sales of new cars in the UK recovered slightly in October, although they were still down on a year previously.

According to the Society of Motor Manufacturers & Traders (SMMT), sales fell to 153,000 units during the month, down about 3% year on year.

It is an improvement on September, when there was a 20.5% decline.

The new figures come as Jaguar Land Rover (JLR) is to reopen its Solihull plant in the West Midlands after a two week shutdown.

Grant worries

The SMMT said there had been strong growth in alternative-fuelled vehicles (AFV), with combined plug-in hybrid and battery electric registrations up 30%.

However, it warned that that government cuts to the Plug-in Car Grant could undermine future growth.

Manufacturers are also worried about the potential risks of Brexit. They fear that an end to frictionless trade could disrupt their "just-in-time" supply chains, hurting production.

JLR, the UK's biggest carmaker, had also blamed weakening global demand and falling diesel sales for its decision to pause production in Solihull from 22 October.

Last week JLR said car sales had fallen sharply, taking it into a loss for the three months to October.

Its revenues were £5.6bn on sales of 129,887 vehicles in the three months to the end of September. As a result JLR's parent company, Tata Motors, reported a net loss £110m for the quarter.

  • BMW to shut Mini plant for month post-Brexit
  • JLR cuts Land Rover production

Explaining the thinking behind the Solihull closure, where JLR makes Range Rover and Jaguar models, the firm said it wanted to achieve "operational efficiencies" and "align supply to reflect fluctuating demand globally as required".

The shutdown came after a move to a three day week for 2,000 workers at the firm's Castle Bromwich plant and a promise in April to lay off 1,000 workers across its West Midlands' plants.

The UK car industry has been struggling in recent months, as diesel sales fall and carmakers face tougher new emissions standards.""

Source – BBC News

About the author

Philip Scott

Head of Equities, Director

Philip has worked as a Private Client Stockbroker for nearly 20 years, commencing his career in Operations with Rensburg Sheppards (now part of Investec plc) before spending 9 years with Killik & Co advising on and directly managing portfolios. He joined SI Capital in 2006 to head up the Private Client Advisory desk.

Philip is a regular contributor to local media commenting on stock market dynamics and is a Chartered Member of the Chartered Institute for Securities & Investment (MCSI). His RDR qualification gained special recognitionfrom the CISI for achieving the highest combined pass mark in the country for the Investment Advice Diploma in 2012.

“At SI Capital I enjoy being part of a talented team who collectively share the same desire to provide excellence in service.  My focus is to ensure that each client receives effective and optimal management of their assets.”

Philip lives locally, is married with 2 daughters and is an avid sports fan (if now predominantly from the sidelines).  His other interests include music and film.

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