Thursday, 8 February 2018

Reduced Consumer Confidence Cost UK Car Industry £2.6bn in 2017

Reduced Consumer Confidence Cost UK Car Industry £2.6bn in 2017

A recent analysis from the AA has stated a lack of consumer confidence cost the UK automotive industry an estimated £2.6 billion in 2017.

Using data from the Society of Motor Manufacturers and Traders (SMMT) showed new vehicle registrations fell by 5.7% when compared to the previous year and this trend is looking to continue with demand down 6.3% in January 2018.

A survey conducted on nearly 20,000 motorists found that 13% of drivers blamed 'mixed messages from the government' on the poor performance of the industry whilst 10% stated 'government policy on diesel engines' for their lack of confidence in the current market.

The confusion surrounding diesel engines, and the current outlook as to whether manufacturers are falling in-line with government policy on emissions is a clear indicator as to the lack of consumer confidence, it is felt across the industry and echoed by the SMMT chief that the government needs to intervene to help encourage consumers into new, cleaner diesel cars which has seen demand fall dramatically.