UK Car Market Reaches “Peak Demand”
The UK new car market prepares for a fall as record breaking sales mark fifth year of growth.
Demand for new cars in Britain has reached its highest ever at 2.69 million in 2016, with a 2.3% increase on last year continuing the market’s steady rise since 2011.
With one of the most diverse car market in the world, nearly 400 different models are currently on the market and a further 70 are planning to be introduced in 2017.
However, between the length of the growth period, the drop in the strength of the pound and the uncertainty of the political landscape, this year is not expected to perform quite as well.
“We’re talking about a market that is at peak demand,” said head of the Society of Motor Manufacturers and Traders Mike Hawes, “There is undoubtedly a levelling off.”
More than 85% of cars sold in the UK imported, making trade post-Brexit vital, according to Mike Hawes, “Looking longer term, the strength of this market will rest on our ability to maintain our current trading relations.”
There’s a predicted 6% drop in sales in the year ahead, but with such record highs, this will not necessarily mean a crash on the road ahead.