New cars sales plummet 30% in ‘lost year’ of 2020

The UK’s new car market contracted by 30 per cent in 2020 as the effects of the Covid-19 pandemic and economic uncertainty around Brexit took their toll on the industry.

Figures released by the Society of Motor Manufacturers and Traders (SMMT) showed a 29.4 per cent decrease in the number of new car registrations, making 2020 the worst year for the auto industry since 1992.

A total of 680,076 fewer cars were registered compared to 2019, equivalent to £20.4 billion in lost turnover, according to the body which represents car makers and sellers in the UK.

The new car industry was battered by the effects of the Covid-19 outbreak, which affected vehicle production and supply and forced dealerships to close for months. The outbreak also hit consumer confidence as people looked to reduce spending and concerns over a post-Brexit trade deal are also thought to have affected interest in new models.

Mike Hawes, chief executive of the SMMT, said: “2020 will be seen as a ‘lost year’ forautomotive, with the sector under pandemic-enforced shutdown for much of the year and uncertainty over future trading conditions taking their toll. However, with the rollout of vaccines and clarity over our new relationship with the EU, we must make 2021 a year of recovery.”

While the overall figures were significantly down, sales of battery electric vehicles and plug-in hybrids (PHEVs) bucked the trend and increased. In fact, the all-electric Tesla Model 3 was December’s best-selling model.