The UK’s new car market suffered from coronavirus dealership shutdowns again in May, as just 20,247 passenger vehicles were registered, representing an 89% decline year-on-year.
Unlike the rest of Europe, showrooms in England were not allowed to open until 1 June, with those in Scotland Wales and Northern Ireland unable to do so until next week. Instead, businesses were only able to offer ‘click and collect’ services, which partially helped the market after a 97.3% drop during April. However, the low May figure represents the worst performance in the month since 1952.
Judging by performances in the largest European markets, June is unlikely to see the UK’s figures bounce straight back. Spain, Italy, France and Germany, whose showrooms opened during May, recorded an average decline of 50% year-on-year. This means that 2020’s UK sales figures will likely see a significant drop come December.
Private buyers accounted for the majority share of registrations at 63.7% of the market, equivalent to 12,900 units, while 6,638 cars went to fleets. There were severe declines across all segments and fuel types, apart from battery electric vehicles, with 429 more units registered compared to May 2019 in this exceptional month as pre-orders of the latest premium models were delivered to customers.
The overall market is now down 51.4% in the first five months of 2020, at just over half a million registrations compared with more than one million at this point last year.
The click and collect only rule saw Tesla, which mainly operates in this way, top the sales sheet for the month, with its Model 3 selling 852 models. This marks the second month that the battery-electric vehicle has led the figures, although it does not appear in the top 10 year-to-date list.
“After a second month of shutdown and the inevitable yet devastating impact on the market, this week’s re-opening of dealerships is a pivotal moment for the entire industry and the thousands of people whose jobs depend on it,” comments SMMT Chief Executive Mike Hawes. “Customers keen to trade up into the latest, cutting-edge new cars are now able to return to showrooms and early reports suggest there is good business given the circumstances, although it is far too early to tell how demand will pan out over the coming weeks and months.
“Restarting this market is a crucial first step in driving the recovery of Britain’s critical car manufacturers and supply chain, and to supporting the wider economy. Ensuring people have the confidence to invest in the latest vehicles will not only help them get on the move safely, but these new models will also help address some of the environmental challenges the UK faces in the long term.”
