Coronavirus: Lockdown sees new car sales drop by 97% in April
Early industry figures show just over 4,000 vehicles were registered last month as most showrooms were closed nationwide.
Tuesday 5 May 2020 11:03, UK
New car sales plunged by 97.3% last month compared to April 2019, revealing the effects of the coronavirus lockdown on the motor industry.
The Society of Motor Manufacturers and Traders (SMMT) said just 4,321 new vehicles were registered - a record low for the market.
That compares to 161,000 in the same month last year - a number already depressed as consumer confidence was knocked by Brexit deadlines and what the car industry described as "confusion" over the future of diesel-powered cars.
Separate SMMT data covering commercial sales showed just 3,387 vans, pickups and 4x4s were registered in the month - a drop of 86.2% on April last year.
The SMMT is forecasting the worst annual performance for new cars since 1992, a 27% decline on 2019, as the COVID-19 crisis takes its toll on incomes and wider demand with the economy tipped to face its deepest slump in a century.
The data for March - the new 20 plate month - highlighted the worst March performance for car sales in two decades.
The figures, while dire, come as no great shock as showrooms have been shuttered since 23 March though some deliveries have made it through.
The SMMT said fleet sales accounted for the bulk of April's decline, with just 871 vehicles bought by individuals.
:: Listen to the Daily podcast on , , ,
It has been a similar story for the UK's car manufacturers, with the SMMT reporting a collapse in factory output because of the lockdown though Aston Martin, the luxury brand, intends to reopen its St Athan manufacturing facility in Wales on Tuesday.
SMMT chief executive, Mike Hawes, called for the automotive sector to be included in the first wave of re-openings once the lockdown is eased, to drive manufacturing and kick-start economic recovery.
He said: "A strong new car market supports a healthy economy and as Britain starts to plan for recovery, we need car retail to be in the vanguard.
"Safely restarting this most critical sector and revitalising what will, inevitably, be subdued demand will be key to unlocking manufacturing and accelerating the UK's economic regeneration."
Ian Plummer, commercial director at Auto Trader, said the easing of social distancing, when it comes, should be seen as an opportunity by showrooms - particularly to push growing interest in the electric vehicle market as new models come through.
"With retailers forced to close the doors to their physical forecourts, it'll come as no surprise to anyone to see just how dramatic an impact it's had on the new car market," he wrote.
"Some brands have been able to sell remotely, but uncertainty in the government's guidelines or a lack of the required infrastructure to operate home delivery in a safe way, has limited it to all but a handful of retailers.
"Whilst the market is down significantly, our data does point to a market that has been paused, rather than stopped, and ready to return to health quickly once the restrictions have been lifted.
"Whilst traffic to our platforms has fallen, we're still seeing circa 945,000 visits every day. What's more, our research of over 3,000 consumers conducted last week showed that only 2% have been put off from buying a new vehicle."