The UK’s franchised car retailers have been praised for their ability to adapt and meet the challenges of COVID-19 pandemic after the SMMT reported a 29.4% decline in new car registrations during 2020.
Reacting to the Society of Motor Manufacturers and Traders’ (SMMT) latest registrations data this morning (January 6), National Franchised Dealers Association (NFDA)) chief executive, Sue Robinson, said that the sector’s efforts had mitigated the impact of the pandemic, adding that it was “well placed for growth” despite this week’s return to lockdown.
SMMT data showed that the UK new car market saw a 10.9% decline in registrations during December, with 132,682 units registered, as the market ended 2020 having completed the registration of 1.63 million units – the lowest total since 1992.
The SMMT said that the 680,076-unit decline was equivalent to £20.4bn in lost turnover.
But the figures came against the backdrop of a pandemic which brought about the near-three-month closure of showrooms from March and a second lockdown in November.
Robinson said: “Although physical showrooms must remain closed over the coming weeks, franchised dealers have demonstrated their ability to adapt, providing ‘click and collect’ services to customers in a safe and compliant manner.
“This cannot fully replace the traditional buying experience but will offset some of the issues facing businesses over the coming months.
“Overall, 2020 was a difficult year and the recently announced third national lockdown will be challenging for franchised retailers.
“However, in the longer term the signing of an agreement with the EU, the shift to EVs and the resilient nature of franchised dealers mean they are well placed for growth.”
Pure electric vehicles (EV) sales rose by 343.7% during December and 185.9% in 2020 as a whole as plug-in hybrids (PHEV) grew by 103.3% last month and 91.2% over the twelve months.
According to the SMMT’s data, Tesla’s Model 3 ended the year on a sales high as the UK’s best-selling vehicle (5,798) in what was the UK’s best-ever year for electric cars with battery and plug-in hybrid vehicles market share up to 10.7%.
Diesel-fuelled vehicles saw a decline of 55.5% and petrol was down 39% across the whole of last year, however.
Commenting on the 2020 registrations data today, SMMT chief executive, Mike Hawes, said: “2020 will be seen as a ‘lost year’ for automotive, with the sector under pandemic-enforced shutdown for much of the year and uncertainty over future trading conditions taking their toll.
“However, with the rollout of vaccines and clarity over our new relationship with the EU, we must make 2021 a year of recovery.
“With manufacturers bringing record numbers of electrified vehicles to market over the coming months, we will work with government to encourage drivers to make the switch, while promoting investment in our globally-renowned manufacturing base – recharging the market, industry and economy.”