More competition is emerging in the UK car market

Responding to SMMT first half of 2023 new car registrations data:

Richard Peberdy, UK Head of Automotive for KPMG UK, said:

“Increased car production volumes are clearing the backlog of car orders that built up over recent years of reduced supply.  But rising interest and mortgage rates threaten new orders, while also altering which brands and models consumers are opting for.  With new entrants from China and a continued growth of Korean brands, more competition is emerging in the UK car market at a range of price points.  This will alter brand market share over the coming years, especially for electric vehicles, disrupting the dominance of legacy players.”

Commenting on the state of play for UK car production, Richard added: 

“Higher inflation and interest rates also pressure business investment, at a time when key decarbonisation decisions are being taken, including new product and technology development or greening and on-shoring of supply chains.  Decisions taken now will shape the next decade of delivery for car manufacturers. 

“Increasingly, the automotive sector is looking at economic conditions globally and making moves now that they feel will serve them best in the medium to longer term.  Rules of origin changes in 2024 are one such consideration – and manufacturers on both sides of the Channel are hoping for an agreeable resolution that accounts for the battery manufacturing industry in Europe still being in its infancy.”

Media contact:

Steven Reilly-Hii, Media Relations Manager, KPMG LLP, E: steven.reilly-hii@kpmg.co.uk , T: 07510 376635.

About KPMG UK:

KPMG LLP, a UK limited liability partnership, operates from 20 offices across the UK with approximately 17,000 partners and staff. The UK firm recorded a revenue of £2.72 billion in the year ended 30 September 2022.  

KPMG is a global organization of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 143 countries and territories with more than 265,000 partners and employees 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.