Deloitte and the National Franchised Dealers Association (NFDA) comment on March 2012 new car registration figures
5 April 2012
Commenting on the latest car registration figures from the Society of Motor Manufacturers and Traders, which show a 1.8% increase to 372,835 units compared with March 2011, David Raistrick, UK Manufacturing Leader at Deloitte said:
“The figures are welcome news to the industry as manufacturers in the UK in Europe have had a tough start to the year. The March figures hold a great deal of significance for the UK’s automotive industry and the wider economy. March is typically the busiest month, with around 350,000 new cars registered, totalling over £5 billion in sales and generating over £1 billion of benefit for the UK economy.
“Last month’s Budget reinforced the Government’s commitment to developing a greener business fleet through the tax system. The Chancellor has underlined commitment to the benefit in kind charge for company cars through to the tax year 2016/17 and removing the 3% diesel supplement from April 2016.
“The UK continues to have one of the greenest car fleets in the world, and will undoubtedly be an early adopter when new technology allows alternatively fuelled vehicles such as hydrogen cell or electric vehicles to break into the mainstream.
“The overall volume of used cars traded across the UK has declined and we are continuing to see private buyers moving down the value chain, with less being spent on an average purchase than 12 months ago. This is echoed in the sentiment across the UK’s 4,000 franchised retailers who remain cautious, with last month’s dealer attitudes survey from the NFDA indicating that dealers remain cautious about the year ahead.”
Sue Robinson, director of the NFDA, comments:
“The 12–plate figures are a clear indication that private and business buyers are continuing to capitalise on the evolving technological capabilities of the new models coming on to the market. With several new models recently launched and continued competitive pricing, March, as forecasted has proven to be a strong month.
“Whilst we have seen slow signs of recovery over the last few months, we will need to see a sustained increase in new and used car sales over the remainder of the year. In order to remain buoyant the industry would benefit from an element of support similar to the scrappage scheme introduced several years ago."
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