The UK automotive sector recorded a positive start to 2022 as 115,087 new cars were registered, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT). Registrations were up by more than a quarter (27.5 per cent) on January 2021, when lockdown restrictions kept car showrooms shut.
The National Franchised Dealers Association argues that there is cause for optimism in the new car sector based on strong consumer demand, despite a disappointing 1 per cent increase in new car registrations in 2021. Chief executive Sue Robinson said: “A poll conducted by NFDA revealed that 78.6 per cent of franchised vehicle dealers are optimistic about the level of demand in the year ahead as consumer confidence improves while we move through the pandemic and the electrification of the UK car parc continues apace.
Responding to the Society of Motor Manufacturers and Traders’ 2021 new car registration data, analyst Deloitte has proclaimed 2021 “the year electric vehicles became mainstream”. It added that range issues are receding as a headwind thanks to technological progress. It identifies the speed of charge point infrastructure and the price of entry post-subsidies as the major headwinds for the sector in 2022.
2021 UK car sales were stalled by Covid and its impact on the supply chain, the Society of Motor Manufacturers and Traders explains. 1.65 million new cars were registered in an increase of just 1.0 per cent on pandemic-ravaged 2020, making it the second-worst year since 1992. Sales were -28.7 per cent below pre-Covid levels thanks to headwinds, which included the semiconductor shortage. However, figures did show that the transition to electric cars is proceeding quickly. More than one in six registrations were plug-in, while battery electric cars alone rose to one in nine. Overall, the SMMT notes that this means more BEVs (Battery Electric Vehicles) were registered than in 2016-2020 combined. The society added that the UK auto industry is calling for the government to extend incentives and mandate chargepoint targets. It argues that the UK needs to accelerate consumer uptake of EVs, maintaining the country’s attractiveness against competitor markets.
The car registration data from the Society of Motor Manufacturers and Traders (SMMT) for the month of March shows that the UK new car market recorded its first ‘growth’ since August 2020, with 29,280 more units registered during March compared to the same month last year. However, the month represents the anniversary of the first lockdown in March 2020, when the pandemic brought Britain to a standstill and registrations fell by -44.4 per cent.
The UK new car market declined by -35.5 per cent in February as 28,282 fewer units were registered during a traditionally weak month for new vehicle uptake, according to figures from the Society of Motor Manufacturers and Traders (SMMT). The industry recorded its lowest February uptake since 1959, with 51,312 new cars registered.
Dealers should be ready for a new surge in car sales when Britain emerges out of lockdown, according to the specialist online car supermarket BuyaCar.co.uk. The digital motor retailer issued the alert after conducting research (among 421 car owners) which reveals that an overwhelming majority of people will choose to use their own car over other modes of transport, when the latest national lockdown restrictions are lifted.
News from the Federal Chamber of Automotive Industries (FCAI) reveals that Australia motor vehicles sales grew by year-on-year 11.1 per cent in January 2021.
The reactions to November’s UK car registration figures, which fell by 27.4 per cent year-on-year according to the SMMT, varied in tone; some were optimistic, others were worried about whether or not the industry could cope with the brought-forward target of 2030 for phasing out of sales of new petrol and diesel cars. And of course there was the uncertainty of whether a Trade Deal could be negotiated with the EU and of the effects of Brexit on the automotive industry, not to mention the effect on the automotive business of the pandemic.
The Financial Conduct Authority (FCA) has confirmed it will introduce a ban on motor finance discretionary commission models. The announcement followed a consultation in October 2019. “In the light of consultation feedback and the additional operational pressures which the sector is facing at present the FCA has agreed to give firms limited additional time to implement the new rules, with the ban coming into force on 28 January 2021”, FCA said.
Over two-thirds (69 per cent) of car owners over 55 bought their car outright without using finance, compared to half (50 per cent) of 34 – 54yrs and a third (33 per cent) of under 34s, according to a survey of over 2,000 UK drivers. On average, over half (56 per cent) of cars were bought outright via cash or debit card, 10 per cent were bought on hire purchase, 11 per cent using personal contract purchase (PCP), 5 per cent loan from a bank, 5 per cent on lease and 3 per cent were given as a gift. The Opinium survey, commissioned by InsuretheGap, an independent provider of GAP (Guaranteed Asset Protection) car insurance, finds that almost one in five (17 per cent) under 34s use a PCP to finance a car purchase, compared to just 9 per cent of over 55s.
The world’s light vehicle market is forecast to decline by 17.2 per cent to 73.6 million units in 2020 due to the impact of the Covid-19 pandemic and its associated economic fallout, according to data and analytics company GlobalData. Calum MacRae, automotive analyst at the company, comments: “This is a bigger one-off shock than witnessed in the two years of the global financial crisis.”
Following the SMMT’s June round of car registrations figures, analyst Deloitte wonders if there is cause to think a UK automotive landmark has passed. While much of the focus has been on the historic depths the country’s car sales have hit, the proportional demand for hybrid and electric vehicles has continued to rise at pace. Michael Woodward, UK automotive lead, Deloitte, said: “The automotive industry is taking positive steps towards recovery from the impact of COVID-19. Socially-distanced showrooms have been reopened in England for a full month, and factory production is ramping up again, in some cases faster than expected.
Commenting on the SMMT car registration figures, Sue Robinson, director of the National Franchised Dealers Association (NFDA), which represents franchised car and commercial vehicle retailers in the UK, said: “Pent-up demand helped sales during the first weeks, but the market will need to be monitored closely to support the sector over the coming months”
UK new car registrations fell -34.9 per cent in June, according to figures from the Society of Motor Manufacturers and Traders (SMMT) as the market began a tentative restart after more than two months of lockdown. The drop was an improvement on May’s -89.0 per cent wipe-out but, with 145,377 new car registrations, this still represented a significant decline of 78,044 compared with June 2019, as dealerships in Wales and Scotland remained closed for much of the month.
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