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Press Release: UK Car Dealers Market Development Report

Released: December 2008

After researching the UK car dealers market development and taking into account various other factors the following conclusions can be drawn from MBD's report:

Market Review 2004-2008:

MBD project the value of car sales to decline by a considerable 10% to a period low of £58.2 billion in 2008. This consolidates the downward trend evident in the previous three years, although the annual level of decline was more moderate at between 1% and 2% in the period 2005 to 2007. The projected fall in sales during 2008 largely reflects the current economic downturn and low consumer confidence, which has exerted a significant downward pressure on car sales. Volume sales of cars are projected to decline by 8% to 9.1 million in 2008, representing an overall decline of 11% compared with 2004. The decline in volume terms has not been as strong as in value terms, reflecting the trend towards smaller cars and increased price competition between car dealers.

Market Forecast 2009-2013:

The UK car sales market is anticipated to decline by 10% in 2009, reflecting the downturn in the UK economy and weak consumer confidence and spending. This is projected to be followed by a further 4% decline in 2010 and by a marginal fall in 2011. Demand is expected to increase from 2012 onwards, although this is somewhat dependent on a strong economic recovery. In 2013, the value of the market is anticipated to increase by 4% to £54 billion at 2008 prices. However this still represents an overall decline of 7% compared with 2008. In the longer term, further growth potential exists in the market, reflecting population growth and the trend toward shorter replacement cycles, provided the economic climate is more positive.

Note to Editors:

MBD specialises in business to business market research. The range of reports and industries in which we operate in is constantly expanding (our portfolio comprises of more that 140 titles). All our reports are written by in-house market consultants.

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