John Leech, Partner in KPMG’s Automotive practice comments on the SMMT car registration figures:
“Earlier forecasts that car sales would end this year down by around 5% are starting to look optimistic with the latest monthly figures showing the market is down by 6.7% year-to-date. Private retail buyers are continuing to defer their purchase or buy used cars instead. However, UK manufacturers are equipped to survive this trend by exploiting strong export demand as foreign investment pours in.
“Vehicle manufacturers are set to face a ‘twin-speed’ global market for decades to come, with growing Far East markets and sluggish Western markets. As demand from domestic consumers drops, China’s luxury auto market is set to grow notably in the next two to three years. China's car market will expand and approach a penetration rate in line with other developed markets over the next 50 years, so there’s a real long-term source of growth on which to base investment decisions.”
Ends
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