New car sales in the UK fell in September by 4.4pc to 328,041 units, according to Society of Motor Manufacturers and Traders (SMMT).

 

COVID-19 has hit auto sector in the UK hard which led to shutdown of factories and showrooms. In the UK, September and March are two important months in terms of sales due to license plate changes which spike demand. On the contrary, UK car sales in September recorded the lowest volumes since the current licence plate system began in 1999. 

 

Sales figures of September is unlikely to generate optimism in the industry says SMMT as the industry has gone through one of the bleakest periods in its history. Pent up demand was supposed to push demand post the lockdown months, but it hasn’t happened, according to reports released by UK auto analysts. 

 

Additionally, consumer and business confidence is threatened by the forthcoming end of the Government’s furlough scheme, an expected rise in unemployment and continuing restrictions on movement as a result of the pandemic.

 

UK’s van market grew by 26.4pc in September to 52,096 units. The sector proved to be strong amid the ongoing COVID-19 crisis. But September 2019 was also not a strong year in terms of sales. New social distancing norms and job losses are hampering demand for the auto sector. 

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