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New UK automobile registrations fell 4.4% in September from a yr earlier, in keeping with the motor business.
That made it the worst September this century in what is generally the business’s second most vital month.
There have been simply 328,041 new registrations within the month, mentioned the Society of Motor Producers and Merchants (SMMT).
The automobile sector has been hit laborious by the coronavirus pandemic, which closed factories and showrooms.
September is generally second to March because the business’s most vital gross sales month, as a result of licence plate modifications sometimes immediate a spike in demand.
However the SMMT mentioned final month noticed the bottom quantity in new vehicles because the present licence plate system started in 1999.
These figures are unlikely to generate a lot optimism in an business which, within the SMMT’s personal phrases, has simply gone by way of one of many bleakest intervals in its historical past.
There had been hope that pent-up demand from patrons unable to go out throughout lockdown would produce a spike in gross sales later within the yr. It hasn’t occurred. It appears as if the financial uncertainty brought on by Covid is making patrons cautious of shopping for or leasing big-ticket gadgets – resembling vehicles.
There’s some excellent news for the business, although. Gross sales of electrical vehicles are rising quick, whilst the marketplace for diesels continues to break down.
Carmakers have ploughed big sums into creating electrical autos, successfully pressured to take action by policymakers intent on chopping air pollution and phasing out conventional vehicles.
Proper now, they’re costly to construct and never very worthwhile. But when sufficient individuals purchase them, then economies of scale will kick in and carmakers can hope to recoup a few of their funding.
‘Future appears difficult’
“Throughout a torrid yr, the automotive business has demonstrated unimaginable resilience, however this isn’t a restoration,” mentioned SMMT chief government Mike Hawes.
“Until the pandemic is managed and economy-wide client and enterprise confidence rebuilt, the short-term future appears very difficult certainly.”
The SMMT mentioned the comfort of Covid lockdown restrictions from June had seen shoppers return to showrooms and factories restart manufacturing traces, after one of many bleakest intervals within the sector’s historical past.
Finest promoting vehicles in September 2020
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1. Vauxhall Corsa: 10,553
2. Ford Fiesta: 9,545
3. Mercedes Benz A-Class: 8,085
4. Volkswagen Polo: 7,417
5. Volkswagen Golf: 6,788
6. Nissan Qashqai: 6,572
7. Ford Puma: 6,341
8. Mini: 6,213
9: Volvo XC40: 5,653
10. Ford Focus: 5,625
Supply: SMMT
However it added that the market confronted “continued stress”, together with Brexit uncertainty and the specter of tariffs. whereas the shift in the direction of zero emission-capable autos required big funding.
“Moreover, client and enterprise confidence is threatened by the forthcoming finish of the federal government’s furlough scheme, an anticipated rise in unemployment and persevering with restrictions on society because of the pandemic,” the SMMT mentioned.
“With little practical prospect of recovering the 615,000 registrations misplaced up to now in 2020, the sector now expects an general 30.6% market decline by the top of the yr, equal to some £21.2bn in misplaced gross sales.”
Nonetheless, not all carmakers had a nasty month.
Historic UK automobile marque MG, now Chinese language-owned, mentioned it had notched up 3,668 gross sales in September 2020 – 169% up on the identical month in 2019.
