8:32 pm, September 6, 2011
A CAR industry expert from Deloitte says last month’s rise in registrations comes as a ‘welcome surprise’ to the industry.
With most economic indicators looking bleak, the fact car registrations rose 7.3 per cent in August could mean brighter times on the horizon for the car industry.
‘Today’s figures showing an increase in new car registrations for the month of August comes as a welcome surprise,’ said David Raistrick, UK manufacturing leader at Deloitte.
‘While fleet sales have held firm in 2011 thus far, retail sales have been down and, with a combination of the holiday season and private buyers waiting for the new registration plates to be introduced in September, it was never expected to be a great month. August is also typically one of the quietest, with an average of around 50,000 new car registrations.
‘August generally represents a relatively small share of the new car market with September being a far more crucial month for the automotive retail industry. On average around 350,000 new cars are registered. After nearly a year of falling sales, I expect September to mirror the August increase and we are likely to see numbers slightly up from last year.
‘This is due to a number of different factors including several new models coming on stream, interest rates remaining low and a “tipping point” having now been reached – the point where it makes sense to buy new, with private consumers having held off for a considerable time.
‘I also see the fleet market remaining firm in September. Adding to this, the manufacturers are continuing to do well with steady demand from external markets like Russia and China counteracting the slowdown in new car sales across Europe and North America.
‘Looking to the future, our forecast is for a good September with a rise over last year.’
