Latest new car registrations reinforce UK as second largest car market in Europe, says Deloitte

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The figures from the Society of Motor Manufacturers and Traders show a 12.1% increase to 403,136 units compared with September 2012.

In response, David Raistrick, UK automotive leader at Deloitte, commented: ‘September is generally the second busiest month of the year for UK car dealers; however, figures released today indicate the best monthly sales in five years. This continues the impressive run of comparative growth, which, in addition to indications that Europe may be turning the corner, will be comforting news for manufacturers. Positive news from France, Italy and Spain, reporting growth for September of 3.4%, 2.9% and 29% respectively, is as welcome in Europe as it is in the UK where there remains the threat that residual values may be undermined as more product is directed into the UK marketplace.’

Looking at what is changing in the major European car markets, Raistrick added that is noticeable that outside of the UK, growth is not being achieved evenly across the various manufacturers.  

He added: ‘Indeed, the growth in the French market is largely down to the contribution of five brands whilst competitors have seen double digit levels of contraction. Indications point to the manufacturers focused on the middle market offerings not seeing their fortunes turning around as quickly as those brands with aspirational or price driven products. It is also worth noting that the Spanish recovery has been very much influenced by government intervention as the provision of subsidies has encouraged the consumer back into the showroom. However, we are well aware that these kinds of market stimulus have a limited existence at which point a stable economic environment is required to maintain any momentum they may provide.’

Looking ahead to the rest of the year, he said: ‘Three quarters of the way through the year, the UK market is now firmly established as the second largest in Europe, with only Germany reporting greater levels of new car sales. The somewhat unexpected contraction in Germany’s market may be lessening, but it raises interesting questions as to what will happen next in the UK. It is a market that many have viewed as defying gravity over the last twelve months, and suggested cannot continue to do so indefinitely – it may however be that the UK has found a new level for sustainable new car sales on a longer-term basis.’

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Natalie Middleton

Natalie has worked as a fleet journalist for over 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day.