New reg figures rally but are tough days ahead?
09 May 2016
Theres good news and some not so good news regarding Aprils new car registration figures. First the good: fleet and business sector sales are up 6.1 percent and 2.8 percent respectively. The not so good? Private sales fell by a not inconsiderable 2.5 percent. The overall market gain was a not-to-be-sniffed-at 2.0 percent, though.
Curiously, Auto Retail Agenda sources have indicated that the market had been depressed for a while, which doesnt quite tally with the end of month rally that delivered a two percent rise. Its no secret that pressure from OEMs is increasing, while external forces – car price aggregators, online retailers – are proving some stiff competition at a time when consumers are increasingly focusing on price to the exclusion of everything else.
Take a wider view of the retail industry and its clear that there are some tough months ahead. Forget the BHS collapse for a moment, as even the economic jitters over Brexit, consumers inability to secure credit and the general financial uncertainty mean that youll have to work harder to secure every deal. Yes, those new-reg figures are good, but it wont last for ever.
Auto Retail Network