Pent-up demand saw new car registrations in the United Kingdom (UK) surge by 11.3pc to 174,887 units in July compared to prior year period as all dealerships re-opened for business. UK’s light commercial vehicle (LCV) registrations also grew by 7.1pc in at 27,000 July following four months of double-digit declines. The re-emergence of sectors such as construction pushed LCV registrations up.
Scenario for 2020
Registrations are down by 41.9pc in Jan-July and are expected to be 30pc lower by the end of 2020. This will result in a loss of £20bn in lost sales, reported Society of Motor Manufacturers and Traders (SMMT).
UK auto segment is well on its way to recovery but uncertainty could put brakes on it. By September end, the auto body should get a clearer picture whether this demand will sustain with the next few weeks crucial to make a firm statement, said SMMT.
Growth in July
July marks the first time in this year that reported a 11.3pc growth in registrations. In July 2019, registrations were low with declining businesses and weak consumer confidence that undermined the market. Pent-up demand coupled with special offers supported a revival of the sector despite Jan-July levels declining by almost 42pc to 598,054 units.
EV numbers encouraging
Segment wise, private demand rose 20pc in registrations to 79,929 units while business demand slipped 11pc to 3,101 units. Battery vehicles (Electric Vehicles or EV) registrations grew 259pc to 8,162 units as public appetite for zero emission cars stayed strong.
In July five top sellers in July were Vauxhall Corsa, Ford Fiesta, Ford Focus, Volkswagen Golf and Mercedez Benz A Class.