Motorists are taking their time to re-evaluate what vehicle they require

Commenting on today’s SMMT car registrations figures Richard Peberdy, automotive lead at KPMG UK, said:

“As the economy begins to gradually move towards normality, motorists are taking their time to re-evaluate what vehicle they require to meet their changing commuting habits.

“Despite some caution, there are signs that sales are ripe for recovery in the longer term. The average age of vehicles on our roads is at a record high, suggesting many drivers will be looking to switch soon, and inventory shortages in the used-vehicle market should push motorists towards new models.

“The picture is particularly encouraging for future plug-in sales, with an increasing supply of attractive electric and hybrid options for consumers to choose from. And we’re likely to see a further boost to the strong momentum behind electric and hybrid vehicle sales in comparison to diesel, a trend that the SMMT data continues to track.

“While continuing supply chain challenges squeeze carmakers’ earnings, dealers will benefit as low stock creates an opportunity for them to build more margin.”

ENDS

Notes to Editors
For media enquiries, please contact:
David Bertram – Citypress
T : +44 (0)161 235 0316 
M : +44 (0)7708 911622 
E : KPMGIM@citypress.co.uk

About KPMG UK

KPMG LLP, a UK limited liability partnership, operates from 21 offices across the UK with approximately 16,000 partners and staff.  The UK firm recorded a revenue of £2.3 billion in the year ended 30 September 2020.

KPMG is a global organization of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 147 countries and territories and has more than 219,000 people working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.