New car sales rise in the UK for June

Posted on 4 Jul 2013 by The Manufacturer

New car sales in Britain rose 13.4 percent in June compared with a year earlier, the Society of Motor Manufacturers and Traders (SMMT) has said.

Figures published today by the SMMT revealed new car sales in June rose to 214,957 units last month, marking the 16th consecutive monthly rise.

The report also showed new car registrations rose by 10% to 1.16m units in the first half of 2013.

SMMT interim chief executive, Mike Baunton said the surge in numbers was largely due to increased private fleet demand, which rose 17.1% in the first six months of the year.

“June secured the 16th month of consecutive growth, a clear indicator that manufacturers and dealers are delivering desirable new products with tangible cost savings from the latest fuel-efficient technology coupled to a wide variety of competitive finance offers,” he said.

“While there are still potential challenges ahead, recent robust growth suggests that the market is on course to perform well ahead of 2012 levels.”

The best selling model this year so far is the Ford Fiesta, followed by the Ford Focus and Vauxhaul Corsa, and the rise in UK car sales is in stark contrast with falling sales in other European countries.

Warwick Business School associate professor of strategic management, Christian Stadler, said the results show consumer confidence in the UK is growing.

“During the financial crisis many people were put off buying a new car, but with growing consumer confidence in the UK they are now going ahead with these purchases. Also, when sales of new cars dropped dramatically during the crisis it means there are now less used cars available,” he said.

Dr Stadler added: “As there are less used cars those which are in the market are sold for a higher price. If a used car is expensive many people think they might as well buy a new car.

“The rise in UK new car sales shows a growing consumer confidence in the UK reflecting a better job market and a more stable housing market.”