Registration of new trucks in the UK is continuing to decline. While last year saw registrations dropping by 3%, the picture is darker in 2018. So far, there has been a sharp decline with January 2018 reporting a 15% decrease.
Why are registrations falling?
This decline is unique to the UK. In the rest of Europe, registrations have increased by almost 9% for trucks over 9 tonnes. So why is it that registrations are in decline? Most experts point the finger at Brexit and the economic uncertainty that may follow.
The European Automobile Manufacturers Association (ACEA) made a statement ahead of an EU summit to discuss the terms of Brexit in March. It called upon member countries to clarify how existing approvals could be transferred when Brexit occurs – https://www.acea.be/press-releases/article/brexit-eu-auto-makers-call-for-urgent-action-to-solve-sector-specific-issue.
The only impact?
It is not only registrations that are likely to see a continued impact from Brexit. The future is uncertain for all sectors of the trucking industry. That includes insurance companies, who will have to re-evaluate their HGV insurance products, such as these: https://www.quotemetoday.co.uk/hgv-insurance, in the light of new border controls and trading conditions.
Leading industry figures such as Mike Hawes (CEO of SMMT) and Eddie Johnson (MD of Isis Insurance) have called on the government to address the concern that is causing this downward trend in the industry.
Trade and trucking
The motor industry and trade are closely tied. If Britain does less business within the EU, the fleets of trucks currently in operation will no longer be needed. British products also face delays at border control, and increased prices if Brexit negotiators are unable to agree favourable trading terms.
Although the government was initially optimistic about negotiating a good deal for the UK as it leaves the EU, that has not come to fruition. We are currently looking at a ‘no-deal’ Brexit. That is the idea that Britain could leave the EU without any formal agreement in place for trade or other concerns.
Many consider this to be a worst-case scenario, where Britain leaves the EU and all its advantages without securing agreement on any of the freedoms that many voted for. With just over six months to go before leave-date, it’s a cause for concern that no agreement has been reached and this may be what is fuelling the reluctance to invest in fleets.