"The UK new car market continues to significantly outperform the rest of the UK retail sector and the other European car markets with monthly sales in September this year up 12.1% compared to September 2012."
"The UK market powers onwards and upwards driven by improving economic conditions and rising house prices feeding consumer confidence and particularly strong private demand. This will likely continue into 2014 and maybe beyond."
"Having fallen by over 20% during the recession, the UK new car market is in touching distance of pre-recession levels, similar to the US and in stark contrast to the rest of Europe. After an awful August on the continent there is now reason for some cautious optimism in September. The rollercoaster in Spain continues with sales up by 29% following an 18% fall last month. This increase is not a cause for celebration as it is influenced by both government subsidies and last September’s sales being the first month of a 3% tax hike."
"September sales in mainland Europe give rise to some cautious optimism. Sales in Germany were just 1% down which is a significant slowing in the rate of decline and sales in France nudged ahead by 3% albeit this was influenced by the French courts relaxing their ban on certain Mercedes models. Sales in Italy were down 3% and it is likely that these sales were boosted by buyers seeking to avoid a VAT increase ; so more bad news from Italy is likely next month."
"Overall the European car market remains hard to call. The arrest in decline in Germany is genuinely good news. In other markets a combination of local factors is making figures look good (or less bad in the case of Italy) but probably unsustainable."
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For further information please contact:
Katrin Boettger, KPMG Corporate Communications
M: 0782 4475168
KPMG Press office +44 (0) 207 694 8773
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 11,000 partners and staff. The UK firm recorded a turnover of £1.7 billion in the year ended September 2011. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 152 countries and have 145,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.
This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.