New Car Market – the Start of a Predicted Decline or an Anomaly Month?
With the reports of February’s automotive industry coming in thick and fast, analysts are reviewing data in order to determine the state of the new car market.
Reports indicate that the total number of new car registrations for February hit 1.1 million units, which is an increase of 1.2% on last year’s figures.
So why the gloomy title?
Although reports indicated the growth of the new car marketplace, they also indicated the signs of a potential slow in market growth. Indeed, when compared to last year’s statistics, February of 2016 saw a 14% growth in new car registrations.
Coupled with this, France and Germany also reported a drop in registrations, with the largest drop coming from France.
Whilst France reported a substantial increase of new SUV registrations, it was still not enough to balance the scales when compared to the vast drop in compact car and MPV registrations.
Furthermore, Germany’s registrations dropped by 2.6%, and in comparison to February of 2016, diesel car registrations fell by a huge 10.5%.
With this in mind, the amount of diesel cars currently in circulation in the German car market has now hit its lowest point since 2010.
Will the UK follow suit?
Well, it’s difficult to predict accurately, although some have suggested that we may see a similar decrease in diesel registrations in the months to come following the governments increased focus towards promoting eco-friendly vehicles, and punishing older and more emission-heavy cars.
Felipe Munoz, the global automotive analyst at JATO Dynamics has stated that:
“Despite the recent declines in certain markets across Europe, the outlook for the industry is still positive…This slowdown is expected, as we saw dramatic increases in registrations as markets recovered from the European recession.”
In terms of the performance of individual manufacturers, the Volkswagen Group managed to retain its position at top of the table.
VW found success within its SUV’s this month, selling more SUV’s than compact cars. This may be thanks to its Seat brand being successful in the sales of the new Ateca SUV model, which cultivated a large increase in revenue for the company in the month of February.
The success of the SUV market may also be attributed to other new releases, such as the VW Tiguan, Toyota C-HR, Mercedes E-Class and Volvo S90/V90.
News by Compare Motor Trader Insurance.