Consumers Drive Recovery in Automotive Sector
SMMT new car registration figures has found that UK car sales rose by 9.3% in July 2012 compared to July 2011, which is the fifth consecutive month of year on year volume growth.
Overall in the first seven months of 2012, new car sales have risen 3.5% compared to the same period last year.
Commenting on the figures, John Leech, Partner in KPMG’s Automotive practice said : “This is a surprising result, particularly given that it is the UK consumer who is powering this recovery, with car sales up 10.5% so far this year, offsetting a 15% decline in car sales to UK companies and businesses.
“Although consumer confidence in the UK remains at a low level, carmakers are offering a higher than normal release of new models and large discounts to consumers. Dealer profits are generally healthy and puts the industry in good shape to respond to any future shocks to consumer confidence from the ongoing Eurozone crisis.”