“If the virus does prove to spread as rapidly as experts fear, there is every chance that it will affect how much contact people want with others as we head into the New Year. Whether we see an official lockdown or not may be a moot point, because individuals will already be modifying their behaviour.
The National Franchised Dealers Association had urged the Prime Minister not to include dealers in any lockdown given that that have invested huge amount of money to make showrooms Covid secure while many have large premises social distancing is easy to achieve.
Over three-quarters of buyers (77%) said their plans to buy a car had not been affected by the pandemic. Furthermore, 12% of respondents who were not planning to buy a car before lockdown are now actively looking to make a purchase.
May and June will not be indicative of the longer-term picture, with pent-up demand and initial oversupply leading to a short-term spike in transactions before supply shortages starve the market of new and used stock.
With government support designed to support both workers and struggling companies firmly in place, it seems on the face of it that the automotive sector is still in danger of damage unless it is very careful.
Lookers, Sytner, JCT600, Vertu, Marshall Group and Arnold Clark have announced closures as pressure mounts to shut down businesses to help combat the growing coronavirus crisis.
