John Leech, partner in KPMG’s automotive practice comments on November’s new car registration figures published today by the Society of Motor Manufacturers and Traders (SMMT):
“The number of new cars sold in November 2011 was 4.2% down on the same month a year ago. Despite this decline, new car registration figures remain better than the SMMT forecast at the start of the year.
“In the face of rising unemployment and low consumer confidence the sector has remained surprisingly resilient. That being said, the industry remains concerned that demand is likely to weaken further. In recent months production schedules have been revised downwards in anticipation of a tough 2012.
“Furthermore, dealer profits have come under pressure in recent months so dealers will be looking to capitalize on manufacturers’ incentive plans to be announced in the run-up to Christmas which will be key to their profit aspirations – even though, it is expected that most dealers will record significant profit falls this year.
“Some dealers have prospered however – they tend to be those that have benefited from the shift to smaller fuel efficient cars or have been affiliated to manufacturers who have offered big discounts to purchase and pre-register vehicles.”
For further information please contact:
Arti Mohan, Corporate Communications
Tel: 020 7694 8735
Mobile: 07768 858 085
KPMG Press Office: 020 7694 8773
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with nearly 11,000 partners and staff. The UK firm recorded a turnover of £1.6 billion in the year ended September 2010. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 150 countries and have more than 138,000 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.