Auto Trader boss says trade war could boost new car sales into UK
The boss of Auto Trader has said the international trade war could boost new car sales into the UK if it becomes more expensive for global manufacturers to export vehicles to other countries.
Chief executive Nathan Coe told the PA news agency that while increased trade friction could raise prices across the board, higher import levies could see more cars coming into the UK.
He said: 'Depending on where they all (tariffs) settle, you might all find new car prices are slightly higher on a like-for-like basis.
'But the car market is very simple, it's about supply and demand.
'If you look at last year, the number of new cars sold to consumers (in the UK) actually fell and was very low by historical standards.
'So I think the UK becomes potentially a more attractive market, given all the trade wars. It has got a good market, it does buy a lot of cars.
'If it's more expensive to export those cars to other countries, it could well be the UK is a place where we find a few more new cars coming this way.'
Mr Coe's comments came as Auto Trader reported that the UK's new car market grew 3% last year, but that was driven by sales of company or 'fleet' vehicles, while sales to consumers fell 4% year-on-year.
He said it is 'a very different story' for the UK's car manufacturers, however, with increased export barriers meaning prices will go up and 'people will buy less of them'.
It comes as the number of vehicles manufactured in the UK plunged last month to the lowest April figure for more than 70 years, amid a hit from trade tariffs and the timing of Easter.
Factories turned out just 59,203 vehicles in April, the lowest figure for that month for more than 70 years excluding 2020, when Covid-19 lockdowns halted production.
But the car sales market, which includes imported vehicles, is in better health, Auto Trader said on Thursday, as it saw a 5% increase in the number of cars advertised through its platform, an average of 449,000 per month through the year to the end of March.
The group said it saw a 5% increase in the number of cars advertised through its platform, an average of 449,000 per month through the year.
And it said consumers made a record 81.6 million visits to Auto Trader's platforms this year.
Auto Trader's revenues came in at £601.1 million in the year to March 31, up 5% compared with the previous 12 months, while profit rose 8% to £376.8 million.
The growth in both markets comes despite another year of high interest rates and inflation in the UK, which the company said put 'financial pressure' on customers.
Mr Coe added: 'Despite broader macroeconomic uncertainties, the UK car market is in good health and we continue to deliver against our strategy to improve car buying and retailing.'
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