What does the growth in new car sales mean for the wider motor trade?


This year, new car sales in the UK have been on the increase, pleasing many involved in the motor trade in the UK. According to statistics, new car registrations have been increased by 11.3%, to around 149,191 new vehicles being sold to customers in November alone.

 Overall, this adds up to a 5.4% increase, adding to the total figure of 1,921,052 vehicles sold in the UK, between January and November.

 Given the recession that has plunged the UK’s economy into a downward spiral over the last two years, this article has been written to illuminate what these figures exactly mean for the wider motor trade in the UK.

 The UK Motor Trade’s status in Europe

 The rise in registrations for new cars by British drivers has propelled the British car market into the second top position in Europe, a positive sign and massive improvement from the year before.

 Although the waters for next year still remain arduous, this recent improvement will give car manufacturers and retailers to keep providing hard work to deliver new cars successfully to customers.

 Working around the problem

 Manufacturers and retailers both have worked hard to accommodate the differences in the market following the recession. They have focused on ‘value for money’ deals as opposed to sinking without adapting to the current climate.

 Of course, although the year has been mostly a success for car manufacturers, success hasn’t been universal – alternative fuel vehicle sales have fallen by 10% this month alone, although this may be due to marketing hitches.

 The strength of the UK motor industry

 The other reason for the rise in sales this year by 10%, and the 5% increase in November alone, is due to a number of reasons. The British motor industry is truly set apart from other competitors by its strenuous productivity, and its strong workforce.

 There is also an industry-wide understanding that these sales increases shouldn’t give rise to a feeling of complacency or comfort in the wake of good news. The recession shows little signs of letting up, and the industry understands that they need to work harder to sustain the big steps they’ve made this year.

 The heads of the industry coming together to make long-term plans in light of the recession has also supported the increase in sales, and has ensured further growth for next year.

 Higher business costs

The growth in sales is good news for the motor trade industry which, like all business, has been hit with a rise in business costs that outstrips the rate of inflation.

While motor trade and fleet insurance has remained stable, energy and fuel costs have rapidly risen, putting many industries under pressure and prompting the government to cancel a planned 3p rise in fuel duty for the new year.

That new cars are driving off forecourts at the rate they are is testament to the industry’s strength, and dealers will hope the cancelled duty rise will help keep things on an upward curve.

If you are involved in the motor trade industry and want to find competitive business costs, look no further than motor trade insurance from Quote Me Today. Quote Me Today are one of the UK’s leading specialist motor insurance providers, with the experience and expertise to offer a product perfectly suited to your needs.

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