Following the release of data today by the Society of Motor Manufacturers and Traders (SMMT), showing that the UK new car market was down 2% at 1.61 million sales in 2022;

David Leggett, Automotive Analyst at GlobalData, a leading data and analytics company, offers his view:

“Major demand headwinds are building for UK households and businesses and there is a recession looming.

“GlobalData forecasts that the UK car market in 2023 will reach around 1.8 million.

“At that level, 2023’s UK new car market would still be around a quarter down on 2019’s 2.3 million sales.

“While there are signs of an easing of parts shortages that have constrained sales over the past two years, fragile supply chains and cost pressures will continue to be extremely challenging this year.

“Underlying new car demand is also going to be weak in 2023.

“I’m afraid a year of weak recovery is in prospect alongside ongoing uncertainties that deter investment in the sector.”