Whether a surge in demand is a long-term trend will become clear by the end of September, according to the CEO of the Society of Motor Manufacturers and Traders (SMMT).
July saw new car registration numbers in the UK go up 11.3% to 174,887 vehicles, as dealerships across the country fully reopened.
SMMT Chief Mike Hawes said that although this month’s figures provided hope, the “market remains fragile in the face of possible future spikes and localised lockdowns as well as, sadly, probable job losses across the economy”.
Even though pent-up demand and special offers alleviated the damage to the industry, according to SMMT, overall registrations are still down by -41.9% or 598,054 units year-to-date. The outlook for the full year is that of a -30% decline in registrations, representing more than £20 billion in lost sales.
The spike in numbers was partially down to customers being able to renew their cars after the lockdown. Amid financial uncertainty brought on by the pandemic, 8 out of 10 car manufacturers also provided attractive finance offers and flexible payment schemes to spark customer interest.
Despite the increase in figures, the coronavirus crisis has led to more than 13,000 jobs being lost in the UK automotive industry. Adding to the market instability, is the uncertainty of the Brexit negotiations around the future of international trade between the UK and its European and other partners across the world, following Britain’s exit from the bloc.
Sourse: sputniknews.com
