At a time when we are bombarded with doom and gloom about the double-dip recession and consumers being unwilling to spend unless they really have to, the following piece of news might sound a bit out of tune due to its optimism.
Apparently, demand for premium cars in the UK is on the rise, as car dealers have reported growth in sales in the first quarter of the year. Pendragon, the largest UK car dealer, with over 250 outlets across the country, has seen a 15.7% increase in new car sales. Similarly, another major player on the market, Inchcape, reports a 4.9% increase in like-for-like sales in the first three months of 2012, with premium and luxury vehicles being the major drivers for growth. Lookers, another car dealer brand, also enjoyed solid performance, reporting 6% growth in new car sales.
According to Andre Lacroix, chief executive of Inchcape, demand for upmarket vehicles is growing internationally as well and this strong performance is not confined to the domestic market. The UK and the rest of Europe are likely to see “solid growth” on the luxury car market for the rest of the year but challenges should also be expected, he said in a statement.
Meanwhile, premium car makers including Jaguar Land Rover and BMW are seeing record sales globally, with new models such as the Range Rover Evoque enjoying great popularity in regions like Europe and the Far East.