UK car sales rose by only 0.06 percent year-on-year in July
UK car sales rose by only 0.06 percent year-on-year in July to 178,523 units.
Business demand for fleet vehicles helped offset the 6 percent drop in demand from members of the public.
So far this year a total of 1,599,159 new cars have been registered, according to figures from the Society of Motor Manufacturers and Traders (SMMT).
Market is cooling
“After a healthy start to 2016 and record registrations in 2015, the market is showing signs of cooling,” said Mike Hawes, the SMMT’s chief executive.
“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.”
Low interest rates, new car models and attractive finance options means car sales probably won’t take a nose dive.
Hawed added: “With low interest rates, attractive finance options and exciting new models coming to the showrooms, the market still has lots to offer customers.”
However, Samuel Tombs, Chief UK economist at Pantheon Macroeconomics, was quoted by Reuters as saying that the increase in car sales over the past couple of years could be coming to an end – citing economic uncertainty as the main reason.
“Uncertainty about the economic outlook is making consumers cautious to purchase big-ticket discretionary items,” he said.