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UK new car supply will increase over the next 12 months according to MD Alex Wright of Shoreham Vehicle Auctions.
This is due to the response of OEMs to the increasing number of launches of Chinese brands in the UK.
Wright said OEMs risk losing valuable sales and market share if they don’t increase their production capacity because brands like MG offer competitively priced gasoline and EV cars in dealer stock or with minimal delivery delays.
MG reported a 66.8% increase in UK sales in 2022 to 51,050 cars, more than established brands such as Skoda, Citroen and Honda and just 1,200 cars behind Peugeot.
“OEMS will have to decide if they want to protect their market share and compete with new Chinese brands who have very strong product propositions and availability,” said Wright.
“As supply increases, it will revive new car sales as well as relieve pressure on the used market.
“Currently, consumers have the option of buying a new car with a full guarantee with competitive financing or a used car three to four years old at the same price outside the manufacturer’s warranty. This reminds me of when Daewoo launched in the UK and the new prices are more in line with used cars.
“OEMs have increased the price of new cars to help address this anomaly, but due to inflation used prices are likely to remain high for the foreseeable future. The same type of used car that we sold at auction in 2018 for £9,000 is now selling for £18,000 which gives you an idea of how the market has moved in recent years.
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