New car figures January
- 6.7% increase to 164,856 units compared with January 2014
- Source: SMMT
THE UK new car market is closing in on three years’ worth of unbroken comparative growth with a positive start to 2015.
With this trend originally having been largely supported by the private buyer, it will be interesting to see whether the initial reported growth in business related sales in January continues through 2015.
Clearly, it is too early to confidently predict whether this will be the case. Yet with a number of new and refreshed models available aimed squarely at the fleet sector, it may well be that fleet will regain its position as the largest player in the new car market. There is also no sign of any reduction in overall levels of manufacturer support or low rate finance, which will also help the retail market to remain buoyant.
However, businesses may be casting a wary eye at the recent developments in the Eurozone. With the impact of the Greek election result still unclear, it is possible that the relatively positive messages coming from the Eurozone towards the end of 2014 may be undermined.
Until there is some clarity as to what the effect on the European markets may be, UK businesses may hold off investing in fleet renewal programs until they are confident that there will not be a detrimental effect to the UK economy.
Indeed, the recent Deloitte Chief Financial Officer survey found that CFOs were becoming more risk averse, with deflation and weakness in the euro area a growing concern.
Overall, our prediction remains unchanged for 2015, with overall sales for the year unlikely to exceed 2014 levels.
