Deloitte comments on latest car registration figures from the SMMT has been saved
Deloitte comments on latest car registration figures from the SMMT
6 November 2014
Commenting on the latest car registration figures from the Society of Motor Manufacturers and Traders, which show a 14.2 % increase to 179,714 units compared with October 2013, David Raistrick, UK Automotive Leader at Deloitte said:
“It is now 32 consecutive months of comparative growth which have been achieved in the UK’s new car market and whilst the % growth being achieved each month is not quite what it was this time last year, the fact is that more cars are being sold on a regular month by month basis with the total sales for the 10 months of 2014 already being in excess of the full year sales achieved in the years 2008 to 2012.
Behind the numbers
“One of the identified contributors to the growth in new car sales has been the significant amounts of money returned to consumers via PPI refunds. It should be noted, however, that the average level of refunds paid to an individual has not been sufficient to purchase a new car outright. With the growth in the share of finance backed new car sales, the conclusion must be that PPI refunds have effectively enabled consumers to pay the deposit on the new car whilst taking out further finance for the balance.
“Whilst the injection of PPI related funds will clearly come to an end, they are one of a number of factors that have contributed to a much faster rate of recovery in the UK automotive market than has been achieved in the other major European markets. Looking ahead, the level of new car sales in the UK has probably reached a plateau, providing the economy remains on its current growth trend and employment levels are maintained.
“It will, however, be interesting to see how the recently announced pension changes will impact on the market, as individuals will have access from April next year to their pension pot value rather than receiving the managed monthly amount through an annuity. Notwithstanding this, however, our market analysis suggests that the UK car market is unlikely to be able to continue rising beyond current levels.”
Notes to editors
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.
Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.
The information contained in this press release is correct at the time of going to press.
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