KPMG: Brexit uncertainty behind UK car production dips
Following the news that UK car production fell almost 17 per cent in September, Justin Benson, head of Automotive at KPMG UK suggested the latest SMMT car manufacturing figures could motivate government to consider automotive industry incentives:
“Whilst exports continue to be the most significant driver for the majority of cars produced in the UK, the domestic market is the main contributor to the reduction in volume. New models, such as expensive electric vehicle models, aren’t helping the situation either. So it would be a pleasant and very welcome surprise for carmakers next week if the Chancellor announces an incentive for consumers to buy very low emission vehicles.
“In the meantime, Brexit and continuing uncertainty is making consumers think twice about making major purchases and KPMG’s recent survey of the public in the event of a ‘no deal’ scenario found that almost half (47%) of the public expect to delay such purchases. While this means great offers on cars will continue, levels of consumer confidence are directly aligned to vehicle purchases. If there is certainty then confidence should increase, which will hopefully see an improvement in car production and sales.”