Automotive industry gets boost

UK car sales rise

10:15 15 May 2013

The UK economy received great news as auto sales rose 15per cent in April, 2013, compared to the same time last year. With cars sales throughout Europe on a continued decline, this is a good sign for Britain’s struggling financial climate and a stark contrast to overall European auto sales numbers. Sales are down 10per cent across Europe, marking the 18th straight month of decline.

 

Mike Baunton, interim chief executive at SMMT (Society of Motor Manufacturers and Traders), said: “The UK continues to perform well ahead of the troubled eurozone as consumer confidence, regular purchase cycles, attractive auto finance deals and wider market factors continue to make new car buying favourable for motorists.”

Individual buyers were the catalyst for the huge boom with private sales up 32per cent compared with the same time last year. Buyers are enticed by great bargains and very attractive auto financing options. With petrol prices soaring, buyers are searching for more fuel efficient vehicles to help balance the costs of operating a vehicle. The Ford fiesta was the most popular vehicle with 8,083 units sold in April.

Although the pace in the UK auto market is showing vast improvement, it remains 300,000 units off the pre-recession pace. However, SMMT has increased its forecast for the year to 2.106 million new car sales, up from the earlier January forecast of 2.057 million units.

Yet despite the positive numbers, economists fear that the car market will still be facing some very serious challenges in the coming months as employment shows signs of stagnating and a rise in consumer price inflation limited wage growth.

As the UK auto industry continues to try to improve sales, consumers can take advantage of excellent auto financing options at least through the remainder of 2013. Whether or not the improvement in sales performance continues beyond then remains to be seen.