New car sales increased 15% in the UK in April, making analysts believe that sales this year will be stronger than the initial forecast.
New car sales increased for the 14th month reaching 163,357 units, up 14.8% on the year, accounting for the best April since 2008. Since the beginning of the year auto sales in the UK have shown a strong growth, compared with France and Germany, which is the largest auto market in Europe.
“The UK continues to perform well ahead of the troubled euro zone as consumer confidence, regular purchase cycles, attractive finance deals and wider market factors continue to make new car buying favourable for motorists,” SMMT Interim Chief Executive Mike Baunton said on Tuesday.
The industry body has increased the full-year target by 3% to around 2.106 million vehicles, from 2.057 million units predicted in January. UK auto sales have seen this increase thanks to high fuel prices, which have pushed customers into buying more fuel-efficient vehicles, with the Ford Focus, Vauxhall Corsa and Ford Fiesta being the best-selling models in April.
“The auto sector faces far from easy conditions over the coming months, with consumers confronted by significant headwinds and businesses under pressure to contain costs,” said Howard Archer, economist at IHS Global Insight.