Car sales in the United Kingdom jumped 7.7 percent in May to 194,032 units, according to the Society of Motor Manufacturers and Traders (SMMT). The SMMT said in a statement that car sales have surged for 27 straight months – a new record for longest monthly growth since it started tabbing records in 1959.
The SSMT said the future demand this year might slow down, as the May growth results was a decline from April’s 8.2-percent hike and March's 18 -percent increase. The SMMT is expecting the annual growth for the full year 2014 to hit 6 percent.
SMMT chief executive Mike Hawes said in the statement that there should be some leveling off in growth rates in coming months as “underlying demand stabilizes." Cheap financing has been a vital factor why car sales were one of the first sectors of UK consumer demand to turnaround.
Richard Lowe, head of retail and wholesale at Barclays, remarked it will be interesting to see if the growth rate slows down in the summer months. He added that if such thing happens, all eyes will be on carmakers and the actions they would take to drive the market forward.
Topping car sales in the UK in May is the Ford Fiesta subcompact, although the Ford Focus compact slid to second place. It is followed by the Volkswagen Golf and the Vauxhall Corsa.
New-car registrations in Germany surged 5 percent in May, driven by incentives offered by carmakers like Opel and Citroen. May sales slightly jumped up 0.1 percent in France and dropped 4 percent in Italy. Sales climbed 17 percent in Spain, boosted by a government subsidy scheme aimed at hiking sales.