The SMMT has revised its 2021 new car registrations forecast down to below 1.9 million in anticipation of COVID-19 lockdown’s impact on the key March numberplate change month.
Data published by the Society of Motor Manufacturers and Traders (SMMT) today (February 4) showed that trading restrictions imposed as part of COVID-19 ‘Lockdown 3’ had resulted in the lowest January new car registrations in the UK since 1970 with a 39.5% year-on-year decline.
Car retailers leveraged their ability to continue trading via click and collect and click and deliver, where permitted, to help the sector deliver 90,249 registrations during the month as the pandemic continued to impact both private and fleet volumes.
But demand was down by 38.5% among private buyers and 39.7%) among large fleets.
SMMT chief executive, Mike Hawes, said that the auto industry faces “a difficult start to 2021” following a £20.4 billion loss of revenue last year.
He added: “Every day that showrooms can safely open will matter, especially with the critical month of March looming.”
A growing expectation that COVID-19 lockdown restrictions will impact the key March numberplate change month for car retailers has led the SMMT to further revise down its 2021 registrations forecast.
The forecast has now been downgraded to below 1.9 million.
Despite still representing an increase of 15.7% compared to what the SMMT referred to as “2020’s ‘lost year’” it would remain well below the 2.3 million 10-year average new car market to 2019.
SMMT data showed that petrol and diesel car registrations declined by 62.1% and 50.6%, respectively, during January.
Battery electric vehicle (BEV) uptake grew by 2,206 units (54.4%) to take 6.9% of the market, as the number of available models almost doubled from 22 in January 2019 to 40 this year.
Combined, BEVs and plug-in hybrid vehicles (PHEVs) accounted for 13.7% of registrations.
SMMT analysis shows that 2020 recorded the largest ever fall in average car CO2 emissions, spurred on by increased uptake of BEV, PHEV and hybrid electric vehicles (HEVs) which accounted for almost one in six new car registrations.
But Hawes said that COVID-19 lockdown was a threat to continued emissions improvements in the UK.
In its registrations statement, the SMMT said that “opening dealerships as soon as it is safe to do so would help re-energise consumer confidence, supporting jobs and a green recovery”.
And Hawes said: “The necessary lockdown will challenge society, the economy and our industry’s ability to move quickly towards our ambitious environmental goals.
“Lifting the shutters will secure jobs, stimulate the essential demand that supports our manufacturing, and will enable us to forge ahead on the Road to Zero.”