New car sales rise for first time in 7 months

UK new car registrations grew year-on-year for the first time since December 2019 but, due to Covid-19, they are still down 40 percent so far in 2020

A Renault car dealer reopens with Covid-friendly measures

New car registrations grew 11.3 percent in July 2020 following the June reopening of dealerships in England, Northern Ireland, Wales and Scotland.

The June sales increase is the first since December 2019.

Dealership closures due to the coronavirus crisis have had a severe impact on new car registrations and deliveries. They fell 44 percent in March, 97 percent in April, 89 percent in May and 35 percent in June.

The Society of Motor Manufacturers and Traders says that despite the July recovery, year-to-date registrations are still down almost 42 percent.

‘Pent up demand’

Pent-up demand helped drive July new car registrations to 174,887 vehicles, says the SMMT.

Demand from private buyers was particularly strong, growing 20.4 percent. This was helped by strong finance incentives, with eight of the 10 top brands offering flexible finance initiatives including offset payments.

Fleet car sales, however, only grew 5.2 percent and business car sales actually fell 11.8 percent.

“July’s figures are positive, with a boost from demand pent up from earlier in the year and some attractive offers meaning there are some very good deals to be had,” said SMMT chief executive Mike Hawes.

“We must be cautious, however, as showrooms have only just fully reopened nationwide and there is still much uncertainty about the future.”

Mr Hawes said it will only become clear by the end of September whether the turnaround in new car registrations is part of a long-term trend.

Vauxhall Corsa

June 2020 best-selling cars

1: Vauxhall Corsa

2: Ford Fiesta

3: Ford Focus

4: Volkswagen Golf

5: Mercedes-Benz A-Class

6: Nissan Qashqai

7: Volkswagen Polo

8: Mini

9: Volkswagen Tiguan

10: Ford Kuga

ALSO READ

Car industry says new car scrappage-style stimulus ‘critical’

The cheapest new cars on sale

The cheapest new cars from £99 a month

Related Articles

Richard Aucock
Richard Aucockhttps://www.richardaucock.co.uk/
Richard is director at Motoring Research. He has been with us since 2001, and has been a motoring journalist even longer. He won the IMCO Motoring Writer of the Future Award in 1996 and the acclaimed Sir William Lyons Award in 1998. Both awards are run by the Guild of Motoring Writers and Richard is currently vice chair of the world's largest organisation for automotive media professionals. Richard is also a juror and Steering Committee director for World Car Awards and the UK juror for the AUTOBEST awards.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Find a Car Review

Latest

Kia EV9 is World Car of the Year 2024

The Kia EV9 is the latest pure electric car to be named World Car of the Year – and it also scooped the World Electric Vehicle 2024 prize

New Volkswagen ID.Buzz GTX gets 340hp and all-wheel drive

The retro-styled ID. Buzz people carrier is now offered with 340hp, making for an unlikely addition to Volkswagen’s sporty GTX range.

How to protect your car with an OBD port locking device

We explain how to prevent your car being stolen by criminals targeting its On-Board Diagnostics (OBD) port.

Salon Privé London to host three days of champagne and supercars

Salon Privé London returns to the Royal Hospital in Chelsea next month, with special celebrations of McLaren and the Porsche 911 Turbo.