New figures from the Society of Motor Manufacturers and Traders (SMMT) have revealed new car registrations to fall to the lowest level since records began.
Last month saw 328,041 cars registered, which is a 4.4% year-on-year decline and the lowest figure since 1999.
September usually boasts strong figures for car registrations as it is when license plates change.
“During a torrid year, the automotive industry has demonstrated incredible resilience, but this is not a recovery,” said Mike Hawes, the chief executive of SMMT.
“Despite the boost of a new registration plate, new model introductions and attractive offers, this is still the poorest September since the two-plate system was introduced in 1999.
“Unless the pandemic is controlled and economy-wide consumer and business confidence rebuilt, the short-term future looks very challenging indeed,” Hawes added.
The number of electric or plug-in hybrid cars, however, jumped 184.3% compared to the same period last year, which the SMMT said was due to a higher choice of models.
Thanks to the challenging trading environment and impacts of the pandemic, the sector is expected to lose £21.2bn in sales overall in 2020.
Whilst sales looked positive in July as car showrooms re-opened, sales have since declined. August saw just 88,000 new cars registered, which was 5.8% in the same month in 2019.
Karen Johnson, who is the head of retail and wholesale at Barclays Corporate Banking, said that whilst the sector is clearly in a “rut”, there could be a brighter future on the horizon.
“Lots of consumers now have both the funds and the motivation to commit to a big ticket purchase like a new car.
“Months of lockdown allowed many to save significant chunks of money, whilst evolving working patterns mean buyers are investing in motors that will work for them no matter what changes lay ahead,” she said.
