The UK Automotive sector continues to experience a strong trading environment, in part driven by the emergence and adoption of a range of new technologies as well as a strong credit environment.
Key data points include:
- Car registrations year to date up 6.2%;
- PCP lending against cars rose 12% to £31.6bn in 2016, with c.90% of new cars now bought on debt;
- Increased demand for wage inflation, which hit 2.6% in Q4 2016; and
- Automotive OEM valuations up over 2x in the last three years.
This Newsletter is a periodic review of UK Automotive activity and trends in the sector.