Dealers optimistic about demand despite current new car issues – NFDA

The National Franchised Dealers Association argues that there is cause for optimism in the new car sector based on strong consumer demand, despite a disappointing 1 per cent increase in new car registrations in 2021. Chief executive Sue Robinson said: “A poll conducted by NFDA revealed that 78.6 per cent of franchised vehicle dealers are optimistic about the level of demand in the year ahead as consumer confidence improves while we move through the pandemic and the electrification of the UK car parc continues apace.

“It is encouraging that sales of electric vehicles experienced significant growth in 2021, driven by the growing range of models available and retailers’ efforts to help their customers make informed choices. However, it is important that the transition to zero emissions continues to be supported by investments in the charging infrastructure and financial incentives for EV buyers. As a result, the recent cut to the plug-in grant was disappointing.

“Throughout 2022, we are confident retailers will continue to show their resilience and ability to meet buyers’ demand with growing footfall levels in showrooms and an ever-improving online offering from dealers.”

Robinson said that 2021 had been “a roller coaster year for new car registrations with lockdowns affecting demand at the start and the global shipping crisis and semiconductor shortage impacting supply towards the end of the year, resulting in the overall market being 28.7 per cent down from pre-pandemic levels.”