Car sales in The UK are reaching to its record-breaking extend after an extensive run of 41 months.
According to official data from Industry, Registration of a new vehicle, the only way to keep track of the number of cars being sold through various deals have gone up every month starting from early 2012.
Car sale increase in numbers
The Society of Motor Manufacturers and Trades claim that there were 178,420 new car registrations in July, which is more that 3.2% on the same month a year ago. 1,555,309 car sales have already taken place this year. It is 6.5% more than in the same period of time 12 months ago and is at a record number.
Cause of Concern
Despite this run, many in the industry has raised the question of how long this run is going to last? Most of them expect this run to reach its saturation point soon or rather than later. The SMMT itself says that the modest increase in July is the hint of a stable second half.
What do experts say?
The society’s chief executives, Mike Hawes said that even though it was a moderate run In July compared to other months, it still is good news and clearly indicates that it will be a stable run in the coming months.
Auto industry expert Professor David Bailey of Aston University says British car industry recovered initially due to private buyers but has switched to fleet buyers now. According to him, despite cooperates are holding off to the idea of buying a car, updating fleets every couple of years or so is what the backbone of sales. He was surprised by the rise in car sales for such a long time and he also admitted that the number of dealers who wants to self-register the car in order to meet their target before giving it to the customer’s shows the pressure they suffer. He sees this as the end of the rise in car sale in UK car market.
With the other car markets in Europe being shunned and the strength of sterling, we will see more foreign manufacturers to turn their attention to UK market with some aggressive deals to make profit as the UK is one of the countries that can offer a great exchange market and has an active market.
A change in taste
Reports show that buyers now have a totally different taste. The data published by SMMT shows over last decade or so, sales of SUV (sports utility car) and crossover, vehicles that are neither a car or an SUV has gone up to 90%.there is an increased demand in mini size car. While traditional medium size cars are having a fallout