SMMT: UK new car registrations fell 34.9% in June 2020

According to data released by the SMMT, new car registrations in the UK fell by 34.9% in June, which is an improvement from May (a drop of 89%). The number of new car registrations in June was 145,377, which is still a significant drop of 78,044 from June 2019.

As of June, 2020 saw 616,000 fewer new cars registered than the same period in 2019, a 48.5% drop. Since consumers were told to stay at home and retailers were forced to close, sales have been lost by around 240,000 vehicles, costing the Treasury an estimated £1.1 billion in VAT revenue alone.

Private demand proved more resilient than business demand, which fell 19.2% in June, with pre-lockdown orders contributing 72,827 new registrations, more than half the market. Vehicle sales fell sharply by 45.2% to 69,498 as businesses paused purchases amid the spending review.

With a fifth of showrooms in England still closed on 4 June, and those in Wales and Scotland not set to open until the end of the month, there remains some uncertainty about the true level of demand.

As society and the economy begin to gradually return to normal, with the wider retail and hospitality sectors reopening, the true picture of consumer confidence is likely to emerge.

With over 590,000 employees and a turnover of £200 billion, the automotive retail sector is one of the most valuable industries in the UK. VAT, car sales tax and other duties collected from the sale of new cars to private buyers alone amount to around £5.4 billion per year, while the industry supports the £82 billion UK automotive manufacturing industry.

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