It’s hard to think of an industry that wasn’t affected in 2020 by the global Covid pandemic, and the car market is no exception. Coronavirus has majorly affected UK car sales. With a wide range of new models lined up for release, at the end of 2019 the automotive industry was preparing for a bountiful year. Even as the virus began to rapidly spread in the early months of 2020, few anticipated the extreme disruption that was to come. But the numbers kept soaring and in March the first national lockdown was imposed, with all non-essential retailers forced to close.
Declining sales.
In April, the Society of Motor Manufacturers and Traders reported that year-on-year new car sales had dropped by a staggering 97.3%, sending shockwaves through the automotive industry. And it wasn’t just new car sales that dropped. With strict social distancing rules being enforced it became impossible for private car sales to take place.
Despite relatively strong recovery in October, year-on-year new car sales were still down 31%, and in November the second national lockdown was imposed, swiftly bringing that recovery to a grinding halt. But it wasn’t bad news across the board: while sales of petrol and diesel cars took further nosedives with the introduction of the second lockdown (39.9% and 59.8% respectively), sales of electric and hybrid vehicles actually rose by 73.3% in November.
Lasting changes.
This is reflective of lasting lifestyle changes brought on by the pandemic. A lot of people realised that jobs they were previously commuting long distances for can be done just as effectively from home, and businesses realised that they can save vast amounts that were previously spent on office space. As the total number of miles driven has dropped, and the range of electric vehicles has increased, electric cars have suddenly become a viable (and preferable) option for many.
Light at the end of the tunnel.
Even for manufactures of petrol and diesel cars, there is light at the end of the tunnel and 2021 promises to be a much better year for the automotive industry in general. The arrival of vaccines has heralded a return to normality. There is a year of built up demand. Finally, after a year of relentless bad news, sales of both new and used cars are expected to rise dramatically, injecting some optimism into an industry that has been badly affected.
As social distancing rules relax from the end of March people will also be able to start selling their cars again. With manufacturers ramping up production of new models and offering great prices to revive market growth, now is the perfect time to sell.