Automotive industry ends 2012 on a high, but road ahead is unclear
Britain's automotive industry received a welcome boost with the news that new car registrations rose 5.3% in 2012 to over two million units reaching, at 2,044,609, the highest volume since 2008, and the largest percentage increase since 2001.
However, the new car market was still 15% below the 2007, pre-recession, level of 2.4 million units.
Paul Everitt, chief executive of the Society of Motor Manufacturers and Traders (SMMT), said the figure was boosted by strong consumer demand "with innovative, fuel-efficient cars keeping buyers in showrooms".
Looking ahead to 2013, Everitt anticipated the market would hold firm -- a view not entirely shared by David Raistrick, UK manufacturing leader at business advisory firm Deloitte. He believes, "there is a strong likelihood that 2013 will see a reduction in the numbers of new cars sold. Artificial stimuli, such as pre-registrations or self-registrations, are not possible on a sustained basis so we expect them to decrease during 2013."
