UK new car registrations fall in June

New UK vehicle registrations fell year on year in June, but alternative fuel vehicle (AFV) demand continued to rise strongly, data from the Society of Motor Manufacturers and Traders (SMMT) show.

New registrations were down by 3.5pc in June at 234,945, compared with 243,454 in the same month last year.

Overall, new car registrations remain lower year on year, down by 6.3pc in January-June at 1.31mn compared with 1.4mn over the same period a year earlier.

Last month's decrease was mainly because of lower diesel vehicles registrations, which were down by 28.2pc year on year at 74,361.

Petrol vehicle registrations rose by 12.3pc year on year to 145,035 in June.

June was also a strong month for AFV registrations, which increased by 45pc to 15,549. This represented 6.6pc of total registrations — the highest monthly share on record.

"Despite a rocky first six months for the new car market, it's great to see demand for alternatively fuelled vehicles continue to rise. Given these cars still represent only one in 20 registrations, however, they cannot yet have the impact in driving down overall emissions that conventional vehicles, including diesels, continue to deliver," SMMT chief executive Mike Hawes said.

Prices for battery metals such as nickel, cobalt, lithium and manganese have risen in the last two years as a result of rising demand from the electric vehicle sector.

Three-month nickel on London-based metal exchange the LME traded at $15,790/t on 19 April, its highest since late 2014.

SMMT recently warned that uncertainty over the UK's decision to leave the EU is stalling investment in the country's automotive industry.

Investment in the UK automotive industry fell by 33.7pc in 2017 to £1.1bn compared with £1.6bn in 2016 — the year of the Brexit vote.