The second annual MHA Motor Dealer report reveals a significant drop in optimism amongst UK motor dealers around the prospects for profitability in the sector this year. 76 per cent of dealers surveyed said they expected profits to drop or remain static for the year, that’s an increase of 20 per cent from 2016.
The light commercial vehicle market (LCV) declined in May following a period of exceptionally strong demand, according to figures released by SMMT. 26,982 new vans hit British roads in May, representing a fall of 5.3 per cent.
After hitting record peaks in 2016 and early 2017, the UK’s new car market saw a significant decline in May. New passenger car registrations declined 8.5 per cent, with a total of 186,265 units. In 2017 overall, the market is 0.6 per cent lower than last year, with more than 1.1 million cars registered between January and May. Alternative fuel vehicles (AFVs) continued their impressive 2017 growth in May, 46.7 per cent higher than in 2016, with a total of 8,258 AFVs registered making 47,936 so far this year. The National Franchised Dealers Association (NFDA) argued that the general election’s short-term impact on consumer confidence has been the key factor, and that medium term prospects remain good for another record-setting year. However KPMG analysts were more taciturn, suggesting car manufacturers have turned their attentions to Europe and expecting a steady decline in 2017.
New car registration figures published by the European Automobile Manufacturers’ Association (ACEA) show that a total of 1,191,034 units were registered in the EU in April 2017, 6.6 per cent less than the year before. Most major markets saw a decrease: the UK’s market dropped by 19.8 per cent, followed by Germany (-8.0 per cent), France (-6.0 per cent), and Italy (-4.6 per cent). Among the largest markets only Spain grew by 1.1 per cent.
A YouGov survey carried out on behalf of the NFDA has asked more than 2,000 respondents for the main barrier preventing them from buying an electric vehicle. The NFDA concentrated its research on the 1,419 who owned at least one car. 29 per cent said the price of the vehicle represented the main barrier, while nearly one in four (24 per cent) said that access to charging points – both at home (12 per cent) and during journeys (12 per cent) – was their main concern. 22 per cent added that the battery range of vehicles was the primary reason preventing them from purchasing an electric car.
March 2017 car registrations in the European Union reached 1,891,583 units in March 2017 according to figures published by the European Automobile Manufacturers’ Association (ACEA), continuing the upward trend seen in the first quarter of the year.
The Independent Garage Association (IGA) said it was “delighted, but not surprised,” to see that independent garages topped consumer satisfaction comparisons in the National Franchised Dealers Association’s (NFDA) Consumer Attitude Survey Spring 2017.
The results of the NFDA Consumer Attitude Survey Spring 2017 were published today, Thursday 6 April 2017. The survey is designed to research market opinion and explore perceptions towards franchised dealers amongst car owners in the aftersales sector.
“Light commercial registrations under 3.5 tonnes were down -0.9 per cent in March – and the same year to date for the first quarter of 2017”, said Sue Robinson, Director of the National Franchised Dealers Association which represents commercial vehicle and franchised car retailers across the UK, commenting on the SMMT’s light commercial vehicle registration figures.
“Following the triggering of Article 50, the NFDA will engage constructively with the Government to ensure the retail motor sector is actively involved in the process going forward”, said Sue Robinson, Director of the National Franchised Dealers Association (NFDA) which represents franchised car and commercial vehicle dealers across the UK, commenting on today’s announcement.
The most recent edition of the National Franchised Dealers Association survey has been published, with dealers showing more optimism about profit returns. “It is positive to see that when evaluating their satisfaction with profit return, the majority of dealers gave a response which was higher than the neutral score of 5.0. However, the average score for both current and future profit return has decreased again compared with the last survey,” said Sue Robinson, director of the NFDA, commenting on the results.
UK chancellor of the exchequer Philip Hammond’s spring Budget contained the Office for Budget Responsibility (OBR) upgraded growth forecasts for 2017, while predicting lower – but rising – figures for the years following the assumed activation of Article 50 as the country leaves the European Union. The government also confirmed an extra £690 million will be added to the £1.3 billion announced in autumn to improve transport networks in urban areas. In other transport news, the freeze on fuel duty has been retained.
The new light commercial vehicle market declined in February, falling -4.3 per cent to 13,291 registrations, according to SMMT. The downturn follows an exceptionally strong performance in 2016, when the sector recorded an eight-year high in registrations.
The National Franchised Dealers Association Winter 2017 survey had 1,704 respondents from a total of 29 participating franchise networks, which equates to a response rate of 41 per cent. The all-important question asking dealers ‘how would they rate their manufacturers overall’, saw a slight decline compared with last summer’s survey (6.1 vs 6.2), but it stands at the same level as the winter 2016 survey.
The UK new car market remained steady in February, dipping just -0.3 per cent, according to figures released by SMMT. 83,115 vehicles were registered in traditionally one of the quietest months of the year ahead of the number plate change in March. Fleets drove the market, with 45,699 cars registered, up 3.3 per cent, while private demand fell -4.4 per cent to 36,018 units and business registrations declined -5.3 per cent to 1,398.
If you would like the latest news from the Chinese tyre industry in Chinese, visit our partner site TyrepressChina.com. Or click below to continue on Tyrepress.