SUV sales in the UK could be set to drop as consumer spending continues to tighten due to the on-going effects of the credit crunch, a new report has revealed.
The Regional Planning Report by Experian has predicted that the car buying habits of UK consumers could start to change and that dealers should prepare for such a situation.
The report states that up until now, larger engine cars such as 4X4s, MPVs and sports cars have remained popular amongst UK buyers despite rising interest rates, growing debt and environmental concerns.
Kirk Fletcher, managing director of Experian’s automotive division, commented: "While sales are still strong in these segments, they are not as strong as in previous years."
"The introduction of higher tax on these vehicles and the consequences of the global credit crunch could finally be the factors that push these segments back."
Fletcher added that "the least polluting cars" are likely to become the nation’s top selling models in the coming years.
According to the Experian report, dealers face the challenge of monitoring the trends in the UK economy such as the housing market, identifying areas of growth and recognising what motivates different kinds of customers, in order to adapt to changes in buying habits.
