ExpertEye European Automotive Report Q2 2016 | Page 27

Top 10 Makes The UK retail vehicle market is also seeing pressure coming from leasing companies who are increasingly looking to diversify away from typical corporate customers and trying to identify opportunities to sell directly to the public. Whilst salary sacrifice has been impacted by the changes in UK minimum wage requirements these changes have had more of an impact on which models are chosen rather than on actual sales volumes. New car sales fell 0.8% in June which is only the second decline in 51 months but YTD sales remain up 3.2% with LCVs just a little lower at 3.0% YTD. However the weaker pound makes imports more expensive and continuing uncertainty around Brexit indicates a likely fall in new car sales of around 4% per annum over the next two years. Whilst the UK may be one of the few right hand drive markets it follows the trend for premium brands and SUV models. Although Land Rover shows a considerable reduction in Median M arket Average JAGUAR The UK is no stranger to volatile used car values whilst leasing companies tend to move their RVs at a slightly more cautious rate. However the new rules over bank capital adequacy, exposure to potential losses from any fallout from a banking crisis in places like Italy and Portugal and the current softening of the UK automotive market means we are likely to see RVs drop by a couple of percentage points over the next twelve months or so with a potential of a short term dip of up to 7-8pp for a 3 to 6 month period over the next three years. European Automotive Report - 2016 Quarter 2 -12.3% 46.8 M INI 46.4 AUDI 46.0 JEEP 43.0 VOLVO KIA HONDA J4 Luxury SUV RV% 37.2 50.5 -0.1% +0.2% % Change last 3 Months +1.3% -1.8% 46.3 +3.1% 43.6 42.9 42.6 J1 Small SUV 41.9 D1 Large 36.3 F1 Luxury -2.0% +0.0% J2 Compact SUV M 2 Large M PV +0.1% 48.7 47.2 D2 Large Premium +0.1% +0.1% C2 M edium Premium E1 Exec utive +0.1% 42.1 Median J3 Premium SUV +0.1% +0.1% Top 10 Segments M arket Average +1.3% 43.4 40.3 at the top of the RV table just ahead of its sister Jaguar brand and BMW. Lexus also enjoys but also due to the limited sales volume. 54.2 47.4 LEXUS RVs over the last three months, this is merely a market realignment and the brand remains a high ranking in part this is due to a combination of its well established hybrid technology Months 52.3 BM W last 3 RV% 37.2 LAND ROVER % Change 39.3 +1.5% -0.7% -0.6% +0.0% +0.0% -5.3% +0.0% Source: Experteye AG 26