Monday, August 11, 2014
Sales Boom 'Nears its end'
Despite latest figures showing car sales continue to fly high, market-watchers now predict that an end to the boom will arrive soon.
Max Warburton, an analyst at Bernstein Research, told ft.com on Sunday that although the British are: “addicted to buying cars… …trend analysis suggests that future market growth is likely to be limited.”
He and other experts believe that the market risks becoming saturated. The SMMT has just increased its year-end predictions for new car sales to 2.45m but its chief executive, Mike Hawes said demand is beginning to "stabilise".
Factors behind the change include a likely increase in interest rates. Meanwhile, improving sales in mainland Europe mean French, German and Italian car makers are less inclined to drive UK sales by offering highly attractive discounts and finance deals.
DATED: 11.08.2014
FEED: ARN
