© Motor1.com UKNew cars at dealer showroom
Industry body says it's "essential" showrooms reopen as soon as possible.
The UK new car market shrank by 35 percent last month, setting an unwanted record for the worst February performance in more than 60 years. The Society of Motor Manufacturers and Traders (SMMT) responded to the figures by saying it was "essential" that showrooms should open as soon as possible.
According to the SMMT's monthly registration data, just over 51,300 new cars were registered last month, down from just under 80,000 in the same month of 2020. February is normally a quiet month anyway, as buyers hold off in anticipation of the new '21' plate that was launched on March 1, but this is the worst February for new car sales since 1959.
The news comes as the sector completes 12 months of disrupted sales operations caused by the coronavirus crisis. Since March 2020, the industry has suffered at the hands of lockdowns and social distancing measures, as well as financial and political uncertainty.
© Motor1.com UKNew cars at dealer showroom
This year may be just two months old, but SMMT figures show sales are already down by 38.1 percent compared with the first two months of 2020. The forecast for total sales in 2021 has now been revised to 1.83 million cars - a figure that would improve slightly on 2020 sales but still wouldn't be anywhere near pre-pandemic levels.
Next month's outlook is particularly grim, with showrooms not expected to open until April. Despite having the ability to run 'click-and-collect services', that means dealers will effectively miss the busiest month of the year - a month that normally accounts for a fifth of the total registrations in a given year.
© Motor1.com UKSEAT dealership in Cardiff UK
With that in mind, the SMMT's chief executive, Mike Hawes, said dealers desperately needed to open as quickly as possible to recover the £23 billion lost in 2020. But even with a vaccine being rolled out and a pathway out of lockdown, dealers aren't expected to reopen their doors until April 12 at the earliest.
"February is traditionally a small month for car registrations and with showrooms closed for the duration, the decline is deeply disappointing but expected," said Hawes. "More concerning, however, is that these closures have stifled dealers' preparations for March with the expectation that this will now be a third, successive dismal 'new plate month'.
"Although we have a pathway out of restrictions with rapid vaccine rollout, and proven experience in operating click and collect, it is essential that showrooms reopen as soon as possible so the industry can start to build back better, and recover the £23 billion loss from the past year."
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