New car sales fall as consumer demand weakens

New car sales fall as consumer demand weakens

John Leech, Head of Automotive for KPMG in the UK, commented on today’s new car registration figures published by the SMMT:

Also on KPMG.com

“UK new car sales were down 0.8% in June as consumer demand fell by 4.5%, although offset in part by a rise in fleet sales. This is the third month that consumer demand has softened and there are many who feel that the top of the market has been reached following 2015’s all-time record sales. Falling consumer confidence since the EU referendum is likely to further reduce sales in the coming months.  

“Manufacturers are evaluating their positions carefully – although the industry is in good health and able to support the market, the decline in Sterling is widely forecast to persist for many months and therefore we can expect prices to rise and volume expectations to be tempered, particularly in the mass-market sector. However, personal contract purchase (PCP) car finance is continuing to underpin the market and should ensure the market does not sharply contract. 

“Overall, we can expect the new car market to fall in the second half of 2016 by around 4%, leaving the full year at or around 2015 levels. It may also be that these changes prove positive for the used car market where supply had been catching up with demand.”

 - ENDS –

 

For press enquiries please contact:

 

Frances Shennan, Press Office Senior Manager

M: + 44 (0) 7584 202794

E: Frances.shennan@kpmg.co.uk

 

Follow us on twitter: @kpmguk

KPMG Press Office: +44 (0)207 694 8773

 

About KPMG

KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 12,000 partners and staff.  The UK firm recorded a revenue of £1.96 billion in the year ended September 2015. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 174,000 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.  Each KPMG firm is a legally distinct and separate entity and describes itself as such.

Connect with us

 

Request for proposal

 

Submit

KPMG’s new-look website

KPMG’s new-look website