Appeal to reopen dealerships as automotive industry enters critical month with jobs hanging in the balance
4 February 2021 • 5:30am
Sales of new cars plunged 40pc in January to mark the worst performance in half a century, according to preliminary data.
Just 90,249 new cars were registered in the first month of the year, the lowest level since 1970, according to the Society of Motor Manufacturers and Traders (SMMT).
A combination of dealers being forced to close their doors because of the latest lockdown and faltering consumer confidence are to blame for the decline.
The dire figures are expected to increase calls from the industry to be allowed to reopen showrooms under Covid-secure conditions to avoid job losse, with the decline underlining the pressure on the automobile sector.
The UK new light commercial vehicle (LCV) market enjoyed growth in the first month of 2021, according to data from the Society of Motor Manufacturers and Traders (SMMT).
Registrations rose 2% last month to 24,029 units as new models and deals drove commercial fleet renewal. Although the fluctuating nature of fleet renewal often impacts the first month of the year in particular, 2021 opened with the highest volume January since 1990, 10.5% ahead of the five-year average.
Although growth is expected for the LCV sector in 2021, SMMT s latest market outlook has been downgraded to reflect ongoing challenges. The forecast predicts LCV registrations to rise 17.5% to 343,850 by year end, down from earlier predictions of 375,000 vehicles.
Home UK carmakers after Brexit: a race to attract battery production
UK carmakers after Brexit: a race to attract battery production
Manufacturers are less concerned about tariffs and supply chains than the switch to mass production of electric vehicles
World Economy News
4 Feb 2021 • 8 min read
From Tokyo to Paris to Detroit, the headquarters of the world’s major carmakers let out a collective sigh of relief when Britain signed its last-minute deal with the EU on Christmas Eve.
The dreaded prospect of tariffs, which would have crippled the industry and jeopardised Britain’s fragile smattering of auto plants, had been avoided.
Demand for new cars fell by 39.5% last month compared with January 2020, new figures show.
Just 90,249 new registrations were recorded as showrooms across the country remained shut, the Society of Motor Manufacturers and Traders (SMMT) said.
It was the automotive industry’s weakest start to a year since 1970.
(PA Graphics)
SMMT chief executive Mike Hawes said: “Following a £20.4 billion loss of revenue last year, the auto industry faces a difficult start to 2021.
“The necessary lockdown will challenge society, the economy and our industry’s ability to move quickly towards our ambitious environmental goals.
“Lifting the shutters will secure jobs, stimulate the essential demand that supports our manufacturing and will enable us to forge ahead on the road to zero.
UK Car Sales Plunge In January: SMMT
Car sales fell 39.5 percent year-on-year to 90,249 units in January.
With lockdown restrictions in place until March, the most important month of the year, which accounts for one in five new car registrations on average, the industry will face a challenging year as showroom closures depressed consumer demand.
Citing the current lockdown, the lobby downgraded its market outlook for 2021 to 1.9 million. The forecast does represent an increase of 15.7 percent compared to 2020 s lost year but it would still be a very subdued market in historical terms. Following a GBP 20.4 billion loss of revenue last year, the auto industry faces a difficult start to 2021, Mike Hawes, SMMT chief executive, said. Lifting the shutters will secure jobs, stimulate the essential demand that supports our manufacturing, and will enable us to forge ahead on the Road to Zero.