United Kingdom

Details

  • Industry: Automotive
  • Type: Press release
  • Date: 06/11/2013

SMMT new car registrations: Slower pace of growth more sustainable 

 

John Leech,  KPMG’s UK Head of Automotive comments on the new car registrations figures for October published by the SMMT today:

 

“The UK new car market grew by 4.0% in October 2013, compared to 12.1% growth in September and 15.7% growth year to date for 2013.

 

“Today’s numbers suggest that the tremendous growth we have seen in the UK new car market over the last few months is starting to return to a more sustainable growth path.  And for the first time in over a year, the three other main European markets have had a similar experience, with new registrations in Germany growing by 2%, France by 3% while registrations in Italy fell by 5% due to a VAT increase taking effect.

 

“This slower pace of growth seems much more sustainable especially considering the potential impact the huge growth rates in new car registrations might have on used car prices.  One feature of the recent increase in new car retail sales has been the availability of cheap finance from car manufacturer-funded personal car plans (PCPs).  Cars sold on a PCP tend to churn faster as they approach their third birthday as consumers are faced with the choice of a large balloon payment to retain the vehicle or a replacement new car on another PCP.  It is hoped that a slower pace of new car sales will avert a used car price crash such as the one seen in 2008.

 

“With improving UK economic conditions and rising house prices having a positive impact on consumer confidence we continue to forecast that strong  private demand will see new car registrations grow by 5% in 2014 and beyond.”

 

Ends

 

 

For further information please contact:

 

Katrin Boettger, KPMG Press Office

katrin.boettger@kpmg.co.uk

+44 (0) 207 694 8773 Direct dial

+44 (0) 782 4475168

 

 

About KPMG:

 

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.

 

 

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