2020 was obviously an incredibly difficult year for businesses in all industries. While there were challenges presented, this didn’t not stop entrepreneurial-minded individuals from starting their own business and the motor industry is one that was popular in 2020.
New Businesses
Research from business card printing specialists instantprint revealed that there were as many as 468,371 new businesses registered in 2020, which is a staggering amount considering the circumstances. Of these near half a million start-ups, there were over 10,000 new motor businesses that were established. This included many different types, such as:
- Sale of used cars and light motor vehicles (4188 registrations)
- Maintenance and repair of motor vehicles (3662 registrations)
- Trade of parts and accessories (924 registrations)
- Renting and leasing of cars and light motor vehicles (822)
- Sale of new cars and light motor vehicles (453)
A Difficult Year
The pandemic has certainly taken its toll on the automotive industry, especially when it comes to sales. There was a staggering drop of 97% in April in new car sales and lockdowns and restrictions forced dealerships, showrooms and garages to close their doors throughout the year.
Looking Ahead
Despite this, there are reasons to be optimistic looking ahead and there is no reason why any of the new motor businesses set up in 2020 won’t go on to find short and long-term success. There is likely to be pent-up demand from motorists that have been wanting to buy a car, which is evident through the mini boost that was seen during the summer when there were fewer restrictions in place with an 11.3% rise in new car sales in the month of July.
The Electric Revolution
On top of this, the electric car revolution means that many motorists will be looking to make the switch and enjoy the many perks of an electric car. Despite 2020’s gloomy statistics, there was a 65% increase in the number of alternative fuel cars in Q1 of 2020 compared to 2019. With consumers becoming increasingly eco-conscious, the financial incentives, the improving infrastructure and the proposed 2035 ban on the sale of petrol and diesel, it will certainly be a busy few years for the electric car market.
Adapting
Of course, the pandemic is not over yet and there are likely to be restrictions in place for some time to come which will stop a full recovery from happening this year. Many motor businesses have found ways to adapt, though, such as dealerships moving online and delivering vehicles straight to motorists’ front doors.
2020 may have been a difficult year, but this did not stop those looking to start new businesses particularly in the motor industry. While there are sure to be challenges ahead, there is no reason why these businesses cannot go on to find success particularly when life starts to return to normal.
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