The Society of Motor Manufacturers and Traders has revealed that the UK car market remains in a state of comparative growth and showing no signs of deteriorating. The success of the market is in part supported by the historically low finance offers available to consumers as the Bank of England’s base rate remains at 0.5 per cent.

Statistics demonstrate a positive result as there has been a 9.4 per cent increase to 72,163 units compared with August 2013.

David Raistrick, UK automotive leader at Deloitte, explains:

“As we approach the second major registration month of the year, the automotive retail sector is anticipating a further bumper month of new car sales as the continuing growth trend shows no immediate sign of coming to an end.”

Indeed, at present the UK car market appears to be front-runners in the production of new automobiles with manufacturers preferring to work with UK businesses over other European customers.

Another factor contributing to the growth of the UK car market is the expected decrease in price. The possibility of deflation in Europe will keep manufacturers concentrating on the UK in anticipation of the price drop and ensure a healthy future market.

One benign concern for the automotive retail sector is the return of used models to the market as although they are pre-owned, their appeal comes from their affordability over newer models. Though manufacturers remain confident in the quality of their product to draw purchase and turn profit for the automotive market.

Words: Daniel Pearce

Source: Real Business