Economic rebound may speed up UK’s car sales image

Reports suggest that full year car market growth has a tendency to accelerate, thanks to an improving economy that pushes demand up for a 17th consecutive month in July, according to the country’s main automotive-industry group.

Auto sales in the U.K. could rise 8.4% in 2013 to 2.22 million vehicles this year, according to a statement issued today by the London-based Society of Motor Manufacturers and Traders. Registrations in July jumped 13% to 162,228 cars, with the seven-month figure rising 10% to 1.33 million.

The truth is that in Europe the situation is rather grim, as UK’s car market remains one of the few bright spots for automakers, whereas on the continent demand for vehicles is sliding to a 20-year low amid a shrinking economy and high unemployment. In Great Britain, financing and discounting by carmakers has sustained demand and it overtook France last year to become Europe’s second-biggest automotive market, after Germany. U.K. services growth was at the fastest pace in more than six years in July, according to industry numbers released yesterday.

“Strong business and consumer confidence in July saw the new car market continue to rise, posting double-digit growth in the month,” SMMT interim Chief Executive Officer Mike Baunton said in the statement. “We’ve seen a range of economic indicators point to improving conditions and our raised sales forecast emphasizes how positively we view the rest of 2013.”

Via Bloomberg