April New Car Sales Strongest For 13 Years

New (KOSDAQ: 160550.KQ - news) car sales recorded their best April performance for 13 years last month, according to industry figures.

The Society of Motor Manufacturers and Traders (SMMT) reported a 2% rise in sales compared to April last year, with 189,505 vehicles leaving showrooms.

The industry body said it was the highest number since April 2013 and was achieved despite a slight dip in diesel sales.

The fuel - and VW - are continuing to face the heat amid the fallout from the company's rigging of emission testing .

Carmakers have responded by pledging greater investment in petrol hybrids and electric cars as pressure builds over diesel pollution - with calls growing in the UK for drivers of new diesels to face higher taxes.

The SMMT said VW's year-to-date sales were 6% down on the same period last year - lagging a wider market that is 4% up in registrations for 2016 to date.

Petrol-powered car sales were 3.4% higher last month, the SMMT said.

April's performance follows a month in which more than half a million cars were sold - the second-biggest monthly total on record - as buyers chased down new 16 plates.

UK car production also hit a 12-year high in March in a further boost to the industry .

SMMT chief executive Mike Hawes said of the sales figures: "After such a strong March, April's steadier performance was to be anticipated and is in line with our expectations for the year.

"Consumer confidence remains high as buyers continue to capitalise on attractive finance deals, although this could be affected by political and economic uncertainty in the coming months."

Fears have been raised that the looming EU referendum - at a time of a slowdown in the world economy - could put people off making big purchases.

While the UK economy was found to have slowed to growth of 0.4% in the first quarter of the year from 0.6% in the previous three months, activity surveys have suggested the economy is near-stalling in the current second quarter as the service sector shows signs of pausing for breath.

Uncertainty over the referendum result has been cited as a factor for April but others have included Easter falling early and a cold start to spring hitting demand for fashion and leisure.