- Market correction continues as new car sales decline in April
- However, car manufacturer profitability is strong as cars get more expensive for consumers
The release of the latest new car sales data from the Society of Motor Manufacturers and Traders (SMMT) reveals that sales in April fell by 16% compared to the same month last year. Electric car sales slipped compared to previous months; the notable absence of Tesla models in the top-10 sellers list for April reveals its impact on the market, affecting new car sales and the EV market share.
Stuart Masson, Editorial Director at The Car Expert, is available for interview or to provide commentary and analysis on request. The Car Expert is the UK’s most comprehensive automotive consumer advice site.
Commenting on the state of industry, Stuart Masson said: “While many bemoan the downward trend in new car sales, the fact is that vehicle manufacturers are in a healthy state; profitability is strong – both BMW and Stellantis announced strong revenue growth today despite falling sales – and we are hopefully moving towards a more sustainable industry which is less focussed on heating up the market with oversupply of vehicles and heavy discounting.”
With fewer discounts available, Masson added: “More people are paying full price for their cars this year, fewer discounts are available as supply tightens and car companies focus their efforts on private sales rather than selling to large fleets, which almost always expect large reductions on price. The knock-on of this is that finance deals that were typically three years on average are now four years, or you simply don’t get a discount when paying up front.”
“What’s is also great to see, from a UK PLC point of view, is that two of the top three performing models in April (both in the top five YTD) are British built – the Nissan Qashqai was the country’s best-selling car in April and the Mini hatchback was third.”
Masson continued: “Telsa has a remarkable ability to affect the electric vehicle market, its sales fluctuate dramatically. Two of its cars, the Model 3 and the Model Y, have appeared at the top of the sales charts previously but this month they were notable for their absence. This is because Tesla’s sales strategy is completely different. It is direct, bypassing dealers, and its sales can fluctuate greatly from month to month. With the rise in demand for electric cars, it is in a very powerful position.”
The SMMT’s April report can be found here: https://www.smmt.co.uk/2022/05/april-new-car-market-declines-15-8-as-supply-constraints-see-2022-outlook-downgraded/
As well as looking more deeply into the data and the impact this has on the industry, analysis from The Car Expert focusses on the issues most likely to matter to consumers in the market for a new car.
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The Car Expert
Founded in 2011, The Car Expert is the UK’s most comprehensive automotive consumer advice site. With an audience of over two million readers a year, The Car Expert provides independent and impartial advice on every aspect of buying, financing, owning, and selling new or used vehicles.
The Rotten Tomatoes equivalent for the automotive world, The Car Expert consolidates reviews from 30 of the UK’s top automotive websites to create the Expert Rating Index. Bringing together science and data analysis, the index calculates a weighted average to give an aggregated score – Expert Rating – that is comparable across different brands and models.
The Expert Rating Index factors in the age of each review, so that newer reviews carry more weight than older reviews. It also breaks down the complex web of different scoring systems that various websites use in their reviews.
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