Derek McAllan, UK Head of Automotive Retail at KPMG, comments on the SMMT car registration figures released today , up 10.9% in August, compared to this time last year.
“A recovering economy, driven by growing consumer confidence continues to boost the new UK car market. Significantly outperforming the rest of the UK retail sector and other European car markets, the motor retail market looks set to remain strong for the remainder of the year and into 2014.
“Disappointingly, after a modest recovery for most of Europe in July, sales slumped in August, with France and Germany recording an 11% and 6% fall respectively. The gains made in Spain during July were completely reversed in August with sales down a whopping 18%, and while a small amount of that is down to a pre-tax increase bubble in July 2012, this is still a very poor result.
“The main worry for the UK is if the continued slump in Europe will tempt manufacturers to pump additional units into the UK. Too many additional units will bring margin erosion but worse Residual Value (RV) volatility. So all eyes should be on mainland Europe for the next two months sales figures.”
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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.