U.K. New-Car Sales Plummet by 5% Amid Market Uncertainty and Economic Volatility.

UK new-car sales fell 5% in July, with 140,154 cars registered compared to 147,517 in the same month last year, according to the Society of Motor Manufacturers and Traders. The decline reflects market volatility and a wider economic environment.

UK new-car sales fell 5% in July, with 140,154 cars registered compared to 147,517 in the same month last year, according to the Society of Motor Manufacturers and Traders (SMMT). The decline reflects market volatility and a wider economic environment.

The slowdown in new-car registrations comes amidst a broader shift in consumer preferences, with a significant increase in demand for used cars, particularly those aged five to 10 years. Auto Trader Group PLC predicts that two million new and 7.75 million used cars will be sold in 2025, marking a 3% increase over last year's total of 9.5 million vehicles [1].

The demand for used cars is driven by several factors, including the shortage of new cars aged three to five years due to disruptions in production caused by the pandemic. Additionally, the economic uncertainty has led consumers to opt for more budget-friendly options. By the end of 2025, there will be an estimated 10.1 million used cars aged five to 10 years on UK roads, up from 8.7 million in 2017 [1].

Meanwhile, the UK's hybrid-fiber networking solutions provider, Actelis Networks, has expanded its presence in the UK market with a major order from a leading tier 2 telecommunications carrier. This strategic win highlights the growing demand for enterprise connectivity solutions that leverage existing infrastructure to reduce deployment costs and timelines [2].

The combination of these factors suggests that the UK car market is adapting to changing consumer preferences and economic conditions. However, the decline in new-car sales in July indicates that the market remains volatile and influenced by broader economic factors.

References:
[1] https://www.ajbell.co.uk/news/articles/uk-car-market-set-strongest-year-covid-pandemic
[2] https://www.stocktitan.net/news/ASNS/actelis-networks-expands-its-uk-presence-with-a-major-tier-2-carrier-jffnho1f1zdp.html