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.”
For media enquiries, please contact:
Jo Chileshe, KPMG Corporate Communications
T: +44 (0)121 232 3343
M: +44 (0)7919 211 803
Follow us on twitter: @kpmguk
KPMG Press Office: +44 (0)207 694 8773
KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 13,500 partners and staff. The UK firm recorded a revenue of £2.07 billion in the year ended 30 September 2016. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 152 countries and has 189,000 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.