Commenting on the latest SMMT car registration figures for the month of March
Commenting on the latest SMMT car registration figures for the month of March, Justin Benson, Head of Automotive at KPMG UK, said:
“March 2017 set a high base for comparison but the latest numbers are demonstrating significant reductions of car registrations.
“The new Vehicle Excise Duty (VED) rates are clearly having an effect, but the decline in diesel cars is not being transferred to Alternative Fuel Vehicles (AFV’s) or petrol. This suggests that people are keeping their vehicles for longer.
“For manufacturers there is opportunity in the numbers. Exports remain at historically high levels and all forms of propulsion, including diesel, are required. Around 80% of vehicles made in the UK are exported, and with strong overseas economies such as the USA and China, our automotive manufacturers and suppliers can take full advantage of their great brands and the value of the pound to continue to grow robust sales overseas.
“Much like businesses, consumers are currently in the ‘wait and see’ camp wanting certainty around the economic environment. Brexit, concerns over inflation above earnings growth, and of course the Bank of England’s hints that they will raise interest rates in the near future are all causing consumers to hold back. However, those who are in the market for a new car should drive a hard bargain.”
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About KPMG in the UK
KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 14,500 partners and staff. The UK firm recorded a revenue of £2.2 billion in the year ended 30 September 2017. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 152 countries and has 189,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.