The worst September for UK car sales of this century

New car registrations in the UK fell 4.4% in September from a year earlier, according to the motor industry.

That made it the worst September of this century in what is typically the industry’s second-biggest month.

There were only 328,041 new registrations in the month, said the Society of Engine Manufacturers and Traders (SMMT).

The automotive sector has been hit hard by the coronavirus pandemic, which closed factories and showrooms.

September is typically second to March as the industry’s most important sales month, because enrollment changes generally cause an increase in demand.

But the SMMT said it had the lowest volume in new cars last month since the current license plate system began in 1999.

These figures are unlikely to generate much optimism in an industry that, in the words of the SMMT itself, has just experienced one of the darkest periods in its history.

There were hopes that stifled demand from buyers who couldn’t get out during the lockdown would lead to increased sales later in the year. It has not happened. It appears that the economic uncertainty caused by Covid is making buyers wary of buying or leasing expensive items, such as cars.

However, there is good news for the industry. Electric car sales are increasing rapidly, even as the market for diesel engines continues to collapse.

Automakers have invested huge sums of money in the development of electric vehicles, effectively forced to do so by legislators trying to reduce pollution and eliminate traditional cars.

Right now, they are expensive to build and not very profitable. But if enough people buy them, economies of scale will kick in and automakers can expect to recoup some of their investment.

‘The future looks challenging’

“During a torrid year, the auto industry has shown incredible resilience, but this is not a recovery,” said SMMT CEO Mike Hawes.

“Unless the pandemic is brought under control and consumer and business confidence is rebuilt throughout the economy, the near-term future looks very challenging.”

The SMMT said that the relaxation of Covid’s shutdown restrictions starting in June saw consumers return to showrooms and factories restart production lines, after one of the darkest periods in the history of the sector.

Best-selling cars in September 2020

1. Vauxhall Corsa: 10,553

2. Ford Fiesta: 9,545

3. Mercedes Benz A-Class: 8.085

4. Volkswagen Polo: 7,417

5. Volkswagen Golf: 6,788

6. Nissan Qashqai: 6,572

7. Ford Puma: 6,341

8. Mini: 6.213

9: Volvo XC40: 5653

10. Ford Focus: 5625

Source: SMMT

But he added that the market faced “continuing pressure”, including Brexit uncertainty and the threat of tariffs. while the shift to zero-emission vehicles required a large investment.

“Additionally, consumer and business confidence is threatened by the impending end of the government licensing plan, an expected rise in unemployment, and continued restrictions on society as a result of the pandemic,” said the SMMT.

“With few realistic prospects of recovering the 615,000 records lost so far in 2020, the industry now expects an overall market drop of 30.6% by the end of the year, equivalent to some £ 21.2 billion in lost sales.”

However, not all automakers had a bad month.

The historic UK car brand MG, now Chinese-owned, said it had recorded 3,668 sales in September 2020, up 169% from the same month in 2019.