UK car sales momentum to continue in 2013
Fall in domestic demand could hurt car sales in Europe.
Car sales in the UK are forecasted to rise by a 7.6 per cent to 2.2 million units in 2013, compared to an earlier forecast of 5 per cent fall, according to a report from Moody’s Investors Service.
The UK car industry, which saw a growth of 5.3 per cent in 2012, is expected to rise by 2 per cent in 2014.
Earlier in August, Mike Baunton, interim CEO of the Society of Motor Manufacturers and Traders (SMMT), said: “We are starting to see slight signs of recovery from Europe which will support stronger production levels this year, and UK manufacturers will continue to build and develop innovative, high-quality products that appeal to a global customer base.”
As per the report, four major European car makers Ford Europe, GM Europe, Fiat Chrysler and Peugeot-Citroen are expected to lose a combined €5bn in the region in 2013 due to fall in domestic demand to the lowest in last 20 years.
In addition, the report finds that demand for car in emerging markets like Brazil and Russia is also losing momentum.
The ratings agency has assigned a Ba3 rating for Fiat and a B1 rating for Peugeot-Citroën. Germany’s Volkswagen and France’s Renault could also see fall in their sales this year.
However, the British carmakers Jaguar Land Rover and Aston Martin are anticipated to enhance their sales due to rise in consumer confidence.
Demand for cars in China is expected to play a key role in global car sales, which Moody’s estimates to grow by 3.2 per cent this year against earlier forecast of 2.3 per cent in February.
Ford Motor and General Motors are also expected to see fall in their sales this year.