PwC comment: 2013 new car market records best performance in five years

Published at 14:31 PM on 07 January 2014

UK car sales in 2013 recorded their best year since 2007, industry figures have shown. Phil Harrold, automotive partner, PwC, commented:

 

"Of the 2.26 million new cars registered in 2013, only 15% were made in the UK, the majority being manufactured in Continental Europe. That said, UK manufacturing has reached a 6 year high of 1.5 million vehicles. This is mainly based on the export of premium vehicles, particularly to China and the US.

 

"To meet this healthy demand, manufacturers must secure their supply chain. There have already been moves to onshore more component production to reduce risk in this area.

 

"Innovation in hybrid and electric vehicles is the key to maintaining future growth. Equally important is innovative work on technology and materials to reduce running costs of existing petrol and diesel vehicles, which still represent the vast majority of the market. It is important to bear in mind that the demand for 'green vehicles' is typically lower in our export markets.

 

“Increased UK registrations are driven by keen credit deals and the availability of PPI mis-selling payments to fund deposits. Clearly PPI will run its course over the next year but could well be replaced by improved consumer confidence. How long low interest credit will be available is the more vexed question, but it seems apparent that the Bank of England will seek to maintain low interest rates until the recovery is firmly established."


Ends 

 

Lucy Bishop
Direct: +44 (0) 20 7212 3205 | +44 (0) 780 803 5503
Email: [email protected]


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