UK automotive sector "defying gravity" says Deloitte chief

Raistrick, UK manufacturing at Deloitte, the financial advisory firm, said questions need to be asked about the sustainability of the market. New car registration figures from the Society of Motor Manufacturers and Traders (SMMT), show a 7.9% increase to 67,749 units compared to February 2012. European sales fell 12.8% in January. The disparity between the UK and the continent commanded closer scrutiny said Raistrick. "While the UK numbers remain strong, which is clearly in everyone's interest, one must ask the question as to what is really different and driving strong performance in the UK by comparison to Europe, and in particular the stronger European economies such as Germany. As German new car sales continue to free fall, we need a deeper understanding of the drivers behind the UK's growth. Is the lull before the storm, or a sustainable longer term high performance?" Raistrick added: "The UK new car market continues to defy gravity with growth levels in stark contrast to the contraction in the major European markets," he said. "The growth achieved in the UK during 2013 has exceeded even the most optimistic expectations, while European sales fell 12.8% in January." SMMT interim chief executive Mike Baunton said attractive new car deals were sustaining the market. "New models are delivering ever greater fuel efficiency, practicality, refinement, technology and predictable ownership costs, so motorists are seeing the benefit of new car purchases," he continued.