New car registrations fall in October as Welsh 'firebreak' lockdown subdues demand
By Iain Gilbert
Date: Thursday 05 Nov 2020
(Sharecast News) - New car registrations declined across the UK in October as the Welsh "firebreak" lockdown subdued demand.
The UK new car market fell 1.6% in October, with 140,945 cars registered, marking a nine-year low for the sector, according to the Society of Motor Manufacturers and Traders, with Wales' lockdown accounting for more than half of the monthly losses.
Besides being the weakest October since 2011, the figure was also 10.1% lower than the average recorded over the last decade.
The arrival of new models and ongoing financial incentives did initially help to sustain UK demand in the month, but the introduction of a "firebreak" lockdown in Wales on 23 October brought about 25.5% fewer registrations in the nation by the end of the month, which accounted for more than half of the overall UK decline.
Subdued activity from businesses drove much of the month's drop, with around 2,500 fewer vehicles joining larger fleets than in October last year, while private registrations saw a modest increase of 0.4%.
Although the industry had been expecting to register about 1.66m new cars in 2020, with the announcement of a second lockdown for England, which will include the closure of vehicle showrooms, the market forecast was downgraded by a further 100,000 to 1.56m - marking a total year-on-year decline of around 750,000 registrations and a £22.5bn loss in turnover.
SMMT chief executive Mike Hawes said, "When showrooms shut, demand drops, so there is a real danger that with England today entering a second lockdown, both dealers and manufacturers could face temporary closure. What is not in doubt, however, is that the entire industry now faces an even tougher end to the year as businesses desperately try to manage resources, stock, production and cashflow in the penultimate month before the inevitable upheaval of Brexit.
"Keeping showrooms open - some of the most Covid-secure retail environments around - would help cushion the blow but, more than ever, we need a tariff-free deal with the EU to provide some much-needed respite for an industry that is resilient but massively challenged."
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