New car registrations fell to the lowest September number recorded since 1999, according to figures published by the Society of Motor Manufacturers and Traders (SMMT).
According to the organisation, the UK new car market declined by nearly 5% in September 2020 – 15.8% lower than the 10-year September average.
With only 328,041 new cars registered in the UK in September, the SMMT said the industry was still counting the cost of lockdown with a shortfall of more than 615,000 units.
Mike Hawes, SMMT chief executive, said: “During a torrid year, the automotive industry has demonstrated incredible resilience, but this is not a recovery. Unless the pandemic is controlled and economy-wide consumer and business confidence rebuilt, the short-term future looks very challenging indeed. ”
However, there was growth in demand for new EVs and hybrids, with an 184.3% increase in battery-electric vehicles (BEVs) compared with September last year – accounting for a third of all BEV registrations in 2020.
The SMMT said the shift towards zero emission-capable vehicles is demanding huge investment from the sector but called on the UK government to set targets on charging infrastructure to reassure consumers that recharging will be as easy as re-filling.
Furthermore, the SMMT said it was concerned that consumer and business confidence would be threatened by the end of the government’s furlough scheme, following an expected rise in unemployment and continued restrictions as a result of the coronavirus pandemic. The society predicted that the sector will see an overall decline of 30.6% by the end of the year, equivalent to some £21bn in lost sales.
