The Year in Figures and What Lies Ahead

Welcome to our latest industry blog post. Join us as we delve into the numbers and figures that define the state of the industry in 2023 so far. From the challenges faced to the milestones achieved, we’ll explore the past, present, and future of the automotive landscape.

January

The year kicked off with a resilient start, demonstrating the industry's strong foundations despite economic challenges. However, we witnessed a dip of 12.1% in new diesel vehicle registrations, driven by growing awareness among consumers about running costs and persistent fuel cost pressures.

February

In February, the latest data revealed that petrol remains the fuel of choice among UK car buyers. An impressive 42,378 petrol cars were sold, marking a 35.8% increase compared to the previous year. This trend highlights the ongoing popularity of petrol-powered vehicles.

March

The end of the first quarter brought confidence as we witnessed the strongest quarter of growth in the new car market since 2019. An additional £2.7 billion of deliveries of new cars were fulfilled. This encouraging milestone arrived during the crucial new plate month, hinting at a positive year ahead.

April

Continuing the streak of growth, British car manufacturing outputs soared by an impressive 9.9% compared to the previous year. Furthermore, over 80% of UK-made cars found their way to the overseas market, bolstering not just the industry but also the thousands of jobs and livelihoods it supports. This export surge brings great news for British carmakers and their global reach.

May

In May, the automotive industry experienced an outstanding performance in commercial vehicle production. With a growth rate of 36.8%, this was the strongest performance for the month since 2008. Both the UK and export markets contributed to this remarkable upswing, reflecting a growing demand for commercial vehicles.

June

In June, we witnessed a 14.8% increase in private car sales, signifying the gradual recovery from pandemic-induced supply chain shortages. Notably, UK passenger car sales rose by an impressive 25.8% compared to the previous year. These numbers speak volumes about the resilience and adaptability of the industry.

July

As of now, the industry has recorded an impressive 949,720 new car registrations in 2023, representing an 18.4% increase from the previous year. This surge in new car registrations aligns with the Society of Motor Manufacturers and Traders' (SMMT) prediction that 2023 will be a year of recovery for the industry.

What Lies Ahead

Looking forward, we anticipate further growth and development within the leasing sector. High interest rates are discouraging customers from financing their vehicle purchases through loans and other finance agreements. Consequently, we may see a shift towards the used car market, where prices are typically lower. Despite surging interest rates, longer-term loans might gain popularity, enabling customers to spread the cost and reduce the burden of higher monthly payments.

In summary, the automotive industry has navigated through challenges, embraced growth, and shown promising signs of recovery in 2023. As car dealers in the UK, staying informed about these trends can help you adapt and seize opportunities in this evolving landscape.