Derek McAllan, UK Head of Automotive Retail at KPMG, comments on the car registration figures released today by the Society of Motor Manufacturers and Traders (SMMT):
“The UK new car market continues to significantly outperform the rest of the UK retail sector and most European car markets, with monthly sales in July this year up 12.7% compared to July 2012. It is also a relief to see some indication of a recovery in mainland Europe this month. Both Germany and France saw car sales rise in July by 2% and 1% respectively, while Italy saw sales fall by 2%. Spain was the star performer in Europe for July, with sales up July 14% above last year, although these numbers were boosted by a Government backed scrappage scheme.
Derek McAllan concludes:
“For the United Kingdom, July was a truly glorious month. A combination of the great weather and wave after wave of British sporting achievement (Murray at Wimbledon; The Lions down under; Chris Froome in France and Ashes success at home) have all contributed to a real feel good factor. While we cannot rely on this tide of positive sentiment to continue throughout the winter, the continued availability of cheap and subsidised finance, a recovering economy and a sustained house price recovery should ensure that the motor retail market remains strong for the remainder of the year and into 2014.
“I expect full year sales of new cars to exceed 2.2 million units and, if this market continues, it may be necessary for the SMMT to raise their expected outturn for the year again.”
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Notes to editors:
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