England keeps UK new car registrations afloat during July.
Considering all the doom and gloom forecasting in the run-up to and after the Brexit, you have to admit that the motor trade is standing firm with a real sense of “let’s just get on with things”.
Yes there’s been ripples in the water as a result of the EU Referendum, with Vauxhall, Ford and Peugeot having implemented small price rises across their cars in the six weeks since the UK voted to leave the European Union, according to Daksh Gupta, CEO of Marshall Motor Holdings during a recent interview with TradePlates.TV.
“It’s only been small percentages, but I think clearly one of the things (driving it) is “what’s the impact of sterling going to be?”, said Gupta.
He said: ‘If you take what we’ve seen with these manufacturers that have put their pricing up, it’s only been one or two per cent. So, if you’re saying that an average vehicle is £20,000 and you took a midpoint and said it was a five per cent increase – that’s £300.
In related news, the boss of Nissan has said future decisions about the car giant’s Sunderland plant will depend on the outcome of Brexit negotiations. However he was ‘reasonably optimistic’ that the UK will continue to be a key partner of the European Union.’
Ghosn told the BBC: ‘I don’t think today you can talk about any impact before we see what is the new status of the UK. Most of the production out of Sunderland is exported to Europe. So obviously for us, the relationship which is going to prevail between the UK and Europe is very important.’
So even with all the negative forecasting leading into the Referendum, businesses and consumers are keeping calm, and carrying on as normal.
“Just keep swimming.”
In terms of new car sales last month, England was the only part of the UK with an increase in new car registrations during July 2016 according to figures released by the SMMT. Sizable falls of around 8% in Scotland and Wales was offset by a modest increase of 1,900 vehicles in England, which just about kept the UK sales figures afloat.
New car sales in Scotland were down to 12,471 in July 2016, a fall of just over 8% compared to July 2016, with a similar fall in Northern Ireland’s monthly registration figures to 3,899.
The year-to-date presents a more positive picture with an increase of around three per cent with 1,594,509 registrations. This is up 44,760, but it’s the 56,100 increase from England that keeps the overall number in growth.
This year sees Northern Ireland’s registrations increase by 233 vehicles while those in Wales fell by 100, and Scotland have fallen by 1,473.
Mike Hawes, SMMT Chief Executive, said, “After a healthy start to 2016 and record registrations in 2015 the market is showing signs of cooling. The automotive market is a vital part of the British economy and it’s important government delivers the economic conditions which instil business and consumer confidence. With low interest rates, attractive finance options and exciting new models coming to the showrooms, the market still has lots to offer customers.”
Looking at the graph below it seems everything is starting to settle onto a healthy plateau.
We’ll keep an eye on the months ahead and report the latest figures right here, so please check back soon!
Thank you for reading this JUly 2016 New Car Registrations post on the WAS Blog!