The UK car market was up 13.4% in June, boosted once again by strong demand in the private retail sector. New car sales in the first half of the year were 10% ahead of last year.
June’s gain was the 16th successive monthly rise. The SMMT said that the UK continues to buck new car market trends in some EU27 countries, with buyers returning to the market after a sustained hold-off from purchasing new vehicles, enticing finance deals and desire to switch to more fuel-efficient models driving market growth.
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SMMT also noted that industry sources suggest consumers have been enabled to buy through low interest rates and manufacturer support on finance packages. Growth in Personal Contract Purchase schemes has given consumer access to new cars, especially for those with cash, collateral or use of PPI mis-selling windfall payments.
Warranty and service packages also give peace of mind to motoring with new cars.
“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.”
