John Leech, UK head of automotive at KPMG, comments on the car sales data released today by the Society of Motor Manufacturers and Traders (SMMT):
“UK car sales rose by 15% in April 2013 compared to April 2012, outperforming expectations and the wider economy in each of the past 14 months.
“There are two key factors behind this growth. Firstly, the new car market in the UK has been buoyed by historically highs level of discounts, including 0% finance from many car manufacturers who have seen sales freefall in the Eurozone over the past 8 months. In addition, there has been pent–up demand in the UK new car market. Previously averaging at 2.4 million cars a year, since the financial crisis in 2008 this figure has only fallen to two million cars a year.”
John continues: “These factors look likely to remain in place over the coming months, which should cheer manufacturers seeking refuge from the dismal performance of Eurozone car markets. For car dealers, the picture is less clear. There are some early signs that the increased supply of ‘nearly new’ used cars is starting to put pressure on the buoyant UK used car market, which have been very profitable for dealers recently”.
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Notes to editors:
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 12,000 partners and staff. The UK firm recorded a turnover of £1.8 billion in the year ended September 2012. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 156 countries and have 152,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.