SMMT: UK new car registrations fell 4.4% in September 2020

The UK new car market fell 4.4% in September, according to data released by the Society of Motor Manufacturers and Traders (SMMT). The industry completed 328,041 new car registrations that month, 15.8% below the 10-year average.

Private registrations fell 1.1% for the month. There was also little demand from businesses, with around 10,000 fewer cars joining larger fleets, a drop of 5.8%.

Even more encouraging, sales of battery electric and plug-in hybrid vehicles grew significantly as consumers continued to choose from a growing number of new models, accounting for more than one-tenth of registrations. Demand for battery electric vehicles (BEVs) increased by 184.3% compared to September last year, accounting for one-third of all BEV registrations in 2020.

After one of the bleakest periods in history, Covid-19 lockdown restrictions were eased from June, with consumers returning to showrooms and factories restarting production lines. However, the market remains under ongoing pressure and faces numerous challenges in the next quarter. Brexit uncertainty and tariff threats remain a concern for the industry. The shift to zero-emission vehicles requires huge investments from the industry, but stagnant technology updates are hampering current efforts to meet climate change and air quality targets.

In addition, consumer and business confidence is threatened as the government's furlough scheme comes to an end and unemployment is expected to rise. The overall car market is expected to fall by 30.6% by the end of the year, equivalent to a loss of sales of approximately £21.2 billion.

199IT.com Originally compiled from: SMMT. Please do not reprint without authorization