John Leech, head of automotive at KPMG UK, comments on today’s SMMT new car registration figures.
He said: “UK new car sales declined 4.8% in June, reflecting a cooling underlying market. The drop in sales signals the softening in consumer confidence that has been seen more widely in the economy this year, and is in part a reflection of a decline in household income and recent political uncertainty.
“Looking to Europe, the major markets of Germany, France and Italy are performing strongly and this, coupled with sterling’s weakness, is causing vehicle manufacturers to reduce UK incentives and volume expectations. Diesel sales fell sharply again, by almost 15%, as consumers continue to react to the negative headlines around air quality, despite no planned regulatory action against Euro 6 diesels.
“Consumer thirst for PCP deals, however, has not yet been impacted by the recent negative press, but as these headwinds continue to impact the UK market we forecast a 5% decline in the new car market during the second half of 2017.”
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