Showroom reopenings offer glimmer of hope in April new car registrations

April saw an artificial 30-fold increase of UK new car registrations compared to the same month last year, but volumes still remained -12.9 per cent lower than the 10-year average at just 141,583 new units, according to the latest figures released by the Society of Motor Manufacturers and Traders (SMMT). This year’s monthly total dwarfed that recorded in April 2020, when the first national lockdown effectively shut the country, and just 4,321 cars were registered.

Retail demand saw the most significant recovery, rising from just 871 registrations last April to 61,935. Click and collect supported the market for the first week and a half until dealerships could reopen on 12 April – a marked contrast from the same month last year, where Covid restrictions effectively prevented private purchases. However, April 2021’s consumer registrations were still -14.5 per cent down on the 10-year average.

Total plug-in vehicle market share broadly followed the trend seen in recent months, accounting for just over one in eight vehicles, or 13.2 per cent. Unusually, plug-in hybrids (PHEVs), at 6.8 per cent of the market, were more popular than battery electric vehicles (BEVs) at 6.5 per cent, following cuts to the Plug-in Car Grant. Monthly BEV uptake was down compared with Q1 2021 overall, however, as they had been running at 7.5 per cent of total registrations.

Overall registrations for 2021 now stand at 567,108 units, some -32.5 per cent down on the average recorded over the past decade. However, the full impact of showrooms reopening has yet to be realised, given the delay between a customer initially visiting a dealership, deciding on a model and then taking delivery of that new vehicle is normally a number of weeks.

BEVs are now expected to account for 8.9 per cent of registrations by year-end – down from the 9.3 per cent initially forecast in January, in light of March’s changes to the Plug-in Car Grant. With PHEVs anticipated to take a 6.3 per cent market share, total plug-in vehicles should comprise 15.2 per cent of all cars registered in 2021.

Mike Hawes, SMMT Chief Executive, said: “After one of the darkest years in automotive history, there is light at the end of the tunnel. A full recovery for the sector is still some way off, but with showrooms open and consumers able to test drive the latest, cleanest models, the industry can begin to rebuild. Market confidence is improving, and we now expect to finish the year in a slightly better position than anticipated in February, largely thanks to the more upbeat business and consumer confidence created by the successful vaccine rollout. That confidence should also translate into another record year for electric vehicles, which will likely account for more than one in seven new car registrations.”

Cautious optimism

This cautious note of optimism was echoed by Sue Robinson, Chief Executive of the National Franchised Dealers Association (NFDA), which represents franchised car and commercial vehicle retailers in the UK. Said Robinson: “It is extremely encouraging to see sales of new cars bounce back in April reflecting the significant pent-up demand as the lockdown was eased across the UK and dealerships reopened”.

She added: “Sales of plug-in vehicles continue their upward trend. With new models coming to the market and retailers working hard to inform their customers and instil “charge confidence” as opposed to range anxiety, the sector is bound to perform well.

“April’s results are positive considering dealerships have been open for less than three weeks, with sales previously supported by click & collect; since reopening, customer footfall and volume of enquiries at dealerships have been strong and driving schools are seeing a major increase in young people booking driving lessons and tests.

“All of this leads us to believe that there is a very upbeat outlook ahead for the motor industry in the summer and retailers are looking forward to a further release of the pent-up demand accumulated over the past months”.