New figures from the Automakers and Traders Association (SMMT) revealed that new car registrations have fallen to the lowest levels since records began.
Last month, 328,041 cars were registered. This is a 4.4% decrease from the previous year, the lowest figure since 1999.
September usually boasts strong car registration numbers, just like when license plates were changed.
“During a passionate year, the automotive industry has demonstrated incredible resilience, but this is not a recovery,” said Mike Haws, CEO of SMMT.
“Despite the boost from new registration plates, new models, and attractive offers, this has been a poor thing in September since the introduction of the two-plate system in 1999.
“Unless the pandemic is managed and the trust of consumers and businesses throughout the economy is not restructured, the short-term future actually looks very challenging,” Hawes added.
However, the number of electric or plug-in hybrid vehicles jumped to 184.3% compared to the same period last year.
Thanks to the challenging trading environment and the impact of the pandemic, the sector is expected to lose £21.2 billion in overall revenue in 2020.
Sales looked positive in July as car showrooms resumed, but sales have since declined. In August, 88,000 new cars were registered, at 5.8% in the same month in 2019.
Karen Johnson, head of retail and wholesale at Barclays Corporate Banking, said the sector is clearly in the “rut,” but there could be a brighter future on the horizon.
“Now, many consumers have both the money and the motivation to commit to buying big tickets like new cars.
“While the months of lockdown has saved many people a considerable amount of money, the evolved working patterns means that buyers are investing in motors that work for them, regardless of what changes are ahead,” she said.
