English Covid Crisis Reigns. November Auto Sales Drop 27.4%

The negative local effects of a Global crisis: The auto industry is a key part of the UK economy at £78.9 billion in annual sales. Click to Enlarge.

The UK new car market saw a decline last month again as registrations in November fell -27.4% year-on-year, or 42,840 units, according to the Society of Motor Manufacturers and Traders (SMMT). This means a – gasp-  -£1.3 billion revenue drop in November as 42,840 fewer new cars than November of 2019 joined British roads at an average price of £30,000. The market is now down -30.7% year to date or 663,761 units.

During November when showrooms across England had to close due to new lockdown restrictions, the industry recorded 113,781 new registrations, taking trade back to levels last seen during the 2008 Great Recession.

SMMT observes the decline was less severe than that seen during the first lockdown – when registrations fell by a record -97.3% in April alone – largely because this time around, retailers and manufacturers were able to dispense vehicles via delivery or click and collect. Despite these innovations, private demand still fell by -32.2% while registrations by large fleets saw a decline of -22.1%.

Market share for battery electric vehicles (BEVs) and plug-in hybrid vehicles (PHEVs) continued to grow significantly, up 122.4% and 76.9% respectively from an admittedly small base. BEVs recorded their third highest ever monthly share of registrations at 9.1%, while PHEV share increased to 6.8% – a combined total of more than 18,000 new zero-emission capable cars joining Britain’s roads. It just seems like they are all in front of you when you are on the road.

The automotive industry is a key part of the UK economy accounting for £78.9 billion in sales and £15.3 billion value added. With some 180,000 people employed directly in manufacturing and 864,000 across the wider automotive industry, it accounts for 13% of total UK export of goods and invests more than £3 billion each year in automotive R&D. More than 30 manufacturers build some 70 models in the UK supported by 2,500 component providers and skilled tradespeople and engineers.