New car demand recovering, registrations break million car mark in June
There are signs that new car demand is recovering as the SMMT reports that new vehicle registrations broke the million car market in the year to June 2013. This represents growth of some 10 per cent in the first half of 2013 totalling some 1,163,623 units. It was the 16th successive monthly rise in June, with this figure growing 13.4 per cent to 214,957 units.
All sectors grew, but private demand increased the most over the first half of the year, up 17.1 per cent, after a 21.3 per cent rise in June.
“Boosted by consistently strong private demand and further growth in June, half-year new car registrations have topped the one million mark,” said Mike Baunton, SMMT interim chief executive. “June secured the 16th month of consecutive growth, a clear indicator that manufacturers and dealers are delivering desirable new products with tangible cost savings from the latest fuel-efficient technology coupled to a wide variety of competitive finance offers. While there are still potential challenges ahead, recent robust growth suggests that the market is on course to perform well ahead of 2012 levels.”
Christian Stadle, associate professor of Strategic Management Warwick Business School, said: “During the financial crisis many people were put off buying a new car, but with growing consumer confidence in the UK they are now going ahead with these purchases. Also, when sales of new cars dropped dramatically during the crisis it means there are now less used cars available. As there are less used cars those which are in the market are sold for a higher price. If a used car is expensive many people think they might as well buy a new car. The rise in UK new car sales shows a growing consumer confidence in the UK reflecting a better job market and a more stable housing market.”