UK New Car Registration Data
Motor manufacturers are responsible for the initial registration of new cars. In almost all circumstances, the process is achieved via the Automatic First Registration & Licensing System. (AFRL for short). Recently, the DVLA has launched a new service for manufacturers and retailers called RAV (Register a Vehicle).
The manufacturers database is where the data journey begins. The V55 form collects a mass of data relating to vehicle particulars, from this the DVLA record is created.
Image of new cars awaiting registration (SMMT)
When a new vehicle is sold, first registration is usually carried out by the manufacturer. Traditionally the Automatic First Registration and Licensing (AFRL) system was used, but this has now been replaced by the RaV (Register a Vehicle) service. The older systems revamp was well overdue, as it was initially created in the 90’s.
The advantages of the new system are that it provides the flexibility to make record changes quickly, and more easily.
At the time of writing the government has upwards of 150 motor manufacturers and 5,000 retailers on the service. This computes to some 1.3 million new car registrations. There is more information on the blog here.
What is new car registration data used for?
New car registration data is a general indication of defined peaks in the months of March and September. Troughs occur in February and August, and these figures are closely related to the release of new registrations as mentioned in March and September.
Using new car registration statistics, analysts can determine the sentiment of the UK’s economy. Generally, the data is more positive when economic growth is more robust. On the flip side this can be negative in periods of lower growth or recession.
What can have an effect on registration figures?
Government policy can impact new vehicle registration figures.
Administrative, regulatory, taxation, scrappage and stimulus schemes can all have an effect on demand. This was evident in 1995 when the entire taxation system was revised. In recent times, changes have had less of an impact, however these changes have still impacted the distribution of vehicles within the tax classification framework.
As an example, since 2001 Vehicle Excise Duty (VED) levied on cars has been determined by emissions. This encouraged owners to choose for more CO2 efficient vehicles, and as a consequence vehicle manufacturers were tasked with producing vehicles with lower emissions.
Image recording new car emissions data (SMMT)
As an example, since 2001 Vehicle Excise Duty (VED) levied on cars has been determined by emissions. This encouraged owners to choose for more CO2 efficient vehicles, and as a consequence vehicle manufacturers were tasked with producing vehicles with lower emissions.
Furthermore, legislation issued by the European Union in 2009 and then 2011 meant that manufacturers were legally obliged to produce CO2 efficient vehicles, or face financial penalties (post 2012 vehicles). These targets have been ratcheted up for 20/21.
In order to encourage motorists to adapt to lower emission vehicles, in 11/12 governments introduced grants giving financial incentives to early adopters. As an example, Mazda gave a scrappage incentive worth £3500 off a new sub 161g/km model.
Similar incentives are now available for electric, or ‘plug in’ vehicles and are currently having a clear effect on registration data.
