A FALL of almost 35% in new car sales in June against the same month a year ago still represents an improvement following more significant drops in March (-44%), April (-97%) and May (-89%).
Latest figures from the SMMT show that there were 135,377 units registered during the month and as the market recovers from the Covid-19 pandemic, there is still a lot of support needed for the sector said Sue Robinson, Director of the National Franchised Dealers Association (NFDA).
Registrations of petrol cars declined 39.9%, diesel 59.8%, while battery electric vehicles rose 261.8%. Demand from private consumers decreased by 9.2% and fleet 45.2%.
Year to date, 653,502 new cars have been registered, down 48.5% on last year.
Robinson added, “It is important to note that although dealers in England and Northern Ireland opened in early June, showrooms in Wales and Scotland remained closed for most of the month.
“Positively, feedback from dealers suggests all customers are accepting the changes to standard procedures implemented in dealerships showing that business in showrooms is running safely and smoothly.
“As many regular commuters have turned to driving to avoid public transport, used and relatively economical cars have been particularly popular over the past weeks.
“We look forward to seeing next month’s figures when the effects of pent-up demand will have started to ease, and more UK dealerships will have been open throughout the month”.
Ashley Barnett, head of consultancy at Lex Autolease, said it was encouraging to see new registrations start to pick-up
“While the use of public transport is being discouraged in line with social distancing, it’s important that people consider the most sustainable alternative. And where journeys can’t be covered by walking or cycling, this should mean driving the newest, cleanest type of car.
“Although many will be looking for a good deal on a used vehicle in the current climate, it’s positive that there is still demand for the newest, ultra-low emission models – which in turn feeds the second-hand market.
“Leasing is a good option for individual motorists and businesses looking to spread the running cost of a new car, and those who move into an EV will enjoy additional cost savings throughout its lifetime, including cheaper ‘fuel’ costs and VED, as well as low Benefit-in-Kind for company car drivers.”
He added: “The coronavirus outbreak has proven extremely challenging for the new vehicle market, but even during the height of lockdown, monthly EV registrations were still up year-on-year.
“We see emerging from lockdown as a clear opportunity to accelerate the progress that’s already been made in terms of cleaning up our roads – especially because a shift towards more flexible working patterns and the need for less business mileage could make EVs more practical for more people.
“The Road to Zero plan launched in 2018 means the direction of travel in this country is clear, and with consultation ongoing about bringing forward the ban on new petrol and diesel vehicles from 2040 to 2035, our advice is to not get left behind.
“Those who make the move to zero-emission driving now – for themselves or on their fleets – can take advantage of the incentives available to early adopters.”
Sales of light commercials declined by 24.8% in June with 30,041 units. Year to date, the market is down by 44.6%.
The NFDA’s Robinson said that demand for cheaper, used vans has already increased, this in turn will push buyers to revisit their fleet requirements and consider new commercials as used vans’ prices rise.
She added: “Over the past months, fewer light commercial vehicles have been produced across Europe and with only essential business operations running, most private and business buyers have held back in these uncertain times.
“As countries start to reopen and manufacturers build new commercials, we hope demand will continue to grow, however it is unlikely it will return to normal levels until 2021”.
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