KEEP calm and don’t panic over any slip in car registration numbers, warns an automotive expert from economic analysts Deloitte.
David Raistrick, UK automotive leader at Deloitte said the latest growth figures in car registrations showing an 8.7% increase compared to December 2013 are unlikely to be repeated this year.

Commenting on the latest car registration figures from the Society of Motor Manufacturers and Traders (SMMT), Raistrick said: “There is naturally going to come a time when the UK new car market’s record run of comparative monthly growth will come to an end.

“However, when this point comes, and our analysis suggests it will be 2015 with a plateau having now been reached, it is important that the market reaction is measured. A levelling off in new registrations should be balanced against the reality that as recently as only three years ago, new cars sales were less than 1.95M, and the European market has been in free fall over this period.

“Equally, there is a finite limit to the numbers of new cars required every year, no matter how buoyant the markets may be. Current levels are hugely positive, and flat sales this coming year, or even a slight reduction, should still be seen as a positive position, and not a tale of woe.”
He pointed to positive indicators such as the lack of much pressure to raise interest rates and that inflation remains below the Bank of England’s target that should promote optimism in the automotive industry.

He concluded: “Taking all of these matters into account, our analysis suggests that the UK’s new car market should continue to be a success story over the next twelve months, though it is unlikely that the rate of growth achieved over the past 34 months will continue. Our forecast for the next 12 months is for new registration figures to broadly match, or possibly even be slightly less than 2014.

“The 2014 figures are great news, and more of the same or even slightly less in 2015, should be seen in an equally positive light.”