According to the Society of Motor Manufacturers and Traders (SMMT), April marked the highest number of new car registrations since before the beginning of the U.K. economic crisis, showing an almost 6 percent increase over the previous year
London, UK -- (SBWIRE) -- 05/22/2014 -- According to the Society of Motor Manufacturers and Traders (SMMT), April marked the highest number of new car registrations since before the beginning of the U.K. economic crisis, showing an almost 6 percent increase over the previous year. These figures are in contrast to the European Union, which is still experiencing a downward trend.
Last year, the demand for new cars fell in the Europe Union to a 17-year low. Unfortunately, most economies in the EU are still weak or in recession and experiencing record-high unemployment levels. Only the U.K., Germany and Spain experienced a strong growth in sales whilst France and Italy both saw a drop in the number of car registrations.
Although there continues to be some distress regarding the state of the economy, Mike Baunton, SMMT interim chief executive, has said that "consistent monthly growth in the market is an encouraging sign of returning consumer confidence."
Additionally, last month, car sales surged with sales at 14.8 percent higher than the year before. There has been a rise in the number of private buyers, and to a lesser extent, a rise in the number of company and fleet buyers as reported by MotorShack.co.uk.
The increase in sales has been attributed to seasonal factors and a number of new attractive financing deals as well as people who have been replacing vehicles purchased during the Government’s scrappage scheme.
"Here in the U.K.,” said Baunton, “the picture has been positive for some time with confident consumers attracted to dealerships by new, innovative, fuel-efficient vehicles and affordable finance deals."
Due to strong first-quarter growth, the SMMT has forecasted that approximately 2.1 million vehicles will be sold during 2014. This is a 3 percent increase over figures for 2013. Whilst predictions and figures fall short of pre-crisis standards, the U.K. market is expected to continue to perform well.
Brian Gilbert, Head of Sales of MotorShack Motor Trade Insurance Limited, said, "It’s very pleasing to see the rise in sales after such a long period of depression. This surge in car sales will have a positive impact over the whole motor trade industry. We anticipate that we will soon see an increase in requests for coverage from many in the industry as sales performance continues its upward trend."
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Contact Name and Position: Brian Gilbert, Head of Sales of Motorshack.co.uk Motor Trade Insurance
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