Comment on the latest car registration figures from the SMMT
6 July 2015
Commenting on the latest car registration figures from the Society of Motor Manufacturers and Traders, which show a 7.0% increase to 257,817 units compared with June 2014, David Raistrick, UK Automotive Leader at Deloitte said:
“This time last year, we saw an increase of more than 13,000 in new car sales in the UK compared to 2013. The fact that an additional 29,000 cars have been sold in June 2015, taking total new car sales for the month over 257,000, is further testament to the strength of the recovery in the UK economy. The new car market recovery, having been initially supported by the private consumer, is now being driven by the fleet sector. This is up 13.1% as business invests in the renewal of fleet stocks.
“The total new car sales are now reaching a peak, and we would expect limited additional growth when looking at the size of the UK car parc. This does not indicate problems in the market, and simply demonstrates that in reality, there are only a limited number of new cars that the market can absorb per annum.
“With there being little sign that the UK will see a significant interest rate rise in the near future, the anticipated slow-down in the rate of new car sales is likely to be gradual. After all, by taking advantage of the attractively benign finance market, car buyers may still be persuaded to change their vehicles earlier than they would otherwise do.
“As last month’s figures showed a decline in new car sales for both Germany and France, two of the largest European markets, motor manufacturers will be hoping that the UK maintains its current sales volumes. They will also hope that government support in Spain for the automotive market continues through the extended “scrappage” schemes. The French and German markets appear to have reacted more immediately to the problems being experienced in the Eurozone. In comparison, some of the countries which have experienced difficulties over the past few years – Italy, Ireland and Portugal among them – are showing strong growth this year.”
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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