UK car sales down -89% in May

At the same time that the coronavirus lockdown closed car showrooms, the UK new car market fell 89 per cent in May, with just over 20,000 vehicles delivered. However, the adoption of ‘click and collect’-style online ordering was one ray of light. Still, according to the SMMT data, in May 2020 the overall UK new car market was 163,477 units behind the same month last year. And therefore, the market is down more than 51 per cent in the first five months.

Private buyers accounted for the lion’s share of registrations at 63.7 per cent of the market, equivalent to 12,900 units, while 6,638 cars went to fleets. Fleets, though, experienced the biggest fall in May – down 93.4 per cent.

There were severe declines across all segments and fuel types, apart from battery electric vehicles, with 429 more units registered year on year in this exceptional month as pre-orders of the latest premium models were delivered to customers.

The dire registrations news comes in the week that car showrooms in England were given the green light to re-open following more than two months of lockdown. In Scotland, Wales and Northern Ireland (until next week), however, car showrooms remain closed.

For the tyre business, such news naturally has the biggest impact on OE tyre sales. However, if fewer new cars are being bought, and if lockdown eases enough for motorists to start driving at somewhere near normal levels, a new-car market slowdown could actually result in a slight uptick in replacement tyre sales. This is likely to be especially true in the fleet market, which as the latest data shows, has experienced the biggest hit to new car sales (along with the business car category).

Commenting on May’s registration figures, Mike Hawes, SMMT Chief Executive, said: “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. 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.”