The light at the end of the recession tunnel nears the UK Automobile Industry
The effects of the economic recession were felt in so many different industries all over the globe.One who took the hardest hit was the United Kingdom’s automobile industry. Sales sank to all time lows and numerous brands went to either sell off assets or closed them altogether. The confidence in buying new vehicles wasn’t as high for consumers to spend their money on. Even the Government’s incentives, like the scrappage scheme, only had little effect on overall car sales.
However, there are now noteworthy signs of improvement. The year 2013 saw the highest number of new car registration since the recession began. It was back in 2007 when the numbers were almost as high. However, this registration of new cars is a huge improvement from 2012, with an average of 600 new cars being registered daily. In total, it reached up to 2,264,737 new vehicles. This shows an increase of 10.6% as compared to 2012.
Even the car manufacturers for who took the hardest hit during the recession had a successful year. The new look of Ford Fiesta was the best selling model of 2013, and was one of the brand’s best selling cars ever. Ford Focus follows closely on the sales as well.
Next to Germany, the United Kingdom is now becoming the second largest car market in the European Union. But this fact is even more magnificent that the UK is the only country to show growth on a monthly basis for the last two years. Even economic heavyweights such as France and Germany had a rough 2012, with their sales dropping as a result of the financial crisis.
Now, in 2014, there are indeed more signs of positive changes to come. Manufacturers are now more confident when coming up and releasing new models. Further, they are starting to display more confidence in providing attractive finance deals, even free insurance and interest-free payments. These, combined with the fact that credit levels are up and now many people have additional capital because of payment protection repayments, everything is looking good for the automobile industry. All of these elements will encourage customers to adopt a stable cycle of buying and changing cars every couple of years.