RSM is predicting an unseasonal drop in September registrations due to ongoing issues, including a move away from diesel; supply for petrol and low emission vehicles; and economic and political uncertainty in the market.
Alison Ashley, head of automotive at RSM said: ‘Normally we would expect an increase in car registrations as consumers look to secure the latest plate; but we are not in normal times, so we expect another dip in year on year registrations to be reported this month. Despite an overall decline, we expect to see alternative fuel vehicles still bucking the trend due to advances in technology and government incentives driving consumer behaviour.
‘As manufacturers balance production and supply of the right vehicle mix and dealers struggle to match customer preference to allocation of vehicles, the market is in unchartered waters and any boost is unlikely to push the industry ahead of the forecasts. Set against this backdrop, dealer profitability through to the end of the year will be a challenge.’