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), with UK car sales rising 13% in June 2013, compared to June 2012:
“The UK new car market continues to significantly outperform the rest of the UK retail sector and European car markets. For the half year to June, the UK new car market is up 10%, driven by private buyers, whose demand is up 17%. Meanwhile, new car sales continue to spiral downwards throughout Europe, including the stronger economies such as Germany which fell 5% in June 2013, giving a first half fall of 8%. France also saw sales fall by 8%, while Italy saw sales fall by 6% in June.
“The UK car market’s resilience reflects specific local conditions, especially consumers spending their PPI compensation claim windfalls, record customer discounts such as 0% finance and the release of demand pent-up during the recession. In addition, car manufacturers have responded to consumers concerns over the high price of petrol with the average consumer gaining over £10/week saving on fuel on trade-in. The figures also reveal for the first time in several years that consumers are switching away from buying used cars back towards buying new cars. Experian released figures yesterday showing that the used car market fell 5% during Quarter 1 2013.
John continues: “These factors aren’t likely to change soon, driving a healthy performance over the second half of 2013, which will be music to the ears of car manufacturers, dealers and the consumer.”
For further information please contact:
Bona Boraliu, KPMG Press Office
0207 6941482 or email@example.com
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.