Commenting on the November 2012 car registration
Figures from the Society of Motor Manufacturers and Traders, which show an 11.3% increase to 149,191 units compared with November 2011, David Raistrick, UK automotive leader at Deloitte said: UK market stays resilient, nine months in a row
6 December 2012
“The resilient UK new car market continues to defy the downward pull of the Eurozone and its debt problems. It is remarkable that we have seen nine consecutive months of growth being reported against 2011, especially as our European partners are forecasting further contraction in their markets during 2013. Even the normally robust German market is being forecast to contract by over 3% next year, which would be its second worst year for new car sales in the last two decades. In a similar manner, the French figures currently show sales declining by nearly 15% on last year and the lowest sales since 1997.
There is no doubt that the current levels of manufacturer pre-registrations have helped support UK new sales, but this is not the full story. Analysis by Deloitte’s automotive research unit indicates that the UK new car market has fared significantly better than each of the European markets. The question is whether the UK market will continue its current performance into 2013.”
The role of developing economies
“As European-based manufacturers continue to grapple with the oversupply issue created from falling market demand, they have had to look further afield to the growth economies of China, India and Brazil in particular. However, the import duties applied in many of these markets as a defensive measure to allow their own manufacturers to develop; combined with tax breaks encouraging foreign owned manufacturers to invest in facilities in the new markets, is simply exacerbating the problems faced by the established European operators. In many instances, it is the executive and niche sectors which are seeing the greatest benefit from export opportunities with demand coming from the growing richer classes in these developing markets.”
Sue Robinson, director of the NFDA, comments:
“It is encouraging, considering the state of the Eurozone, that the UK car market remains buoyant. There have been some excellent ‘value for money’ offers for consumers by manufacturers keen to sell vehicles here in the UK. This has helped bolster car sales figures in the UK market when others are suffering.”
In this press release references to Deloitte are references to Deloitte LLP, one of the country's leading professional services firms.
Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.
The information contained in this press release is correct at the time of going to press.
Member of Deloitte Touche Tohmatsu Limited.