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Demand for new cars is down in 2021
16 March 2021
A survey by Cox Automotive has found that orders for new cars, ‘21’ number plate cars in this case, were down by 30% in March 2021 compared with previous years – a month which is usually one of the best performing in terms of car sales.
Cox Automotive Insight and strategy director Philip Nothard said, “The data on car sales during the third lockdown makes for difficult reading, but it also provides some optimism. Seventy percent of dealers report the third lockdown has caused a 10-30% reduction in new car orders, and 17% of dealers have been hit as badly as up to 50%.
“This highlights why it’s imperative for the industry, that car showrooms reopen on April 12. Thankfully, over half of the dealers we asked believe that economic conditions will improve once the third lockdown ends.
New car sales were also down by 35.5% in February 2021 compared with February 2020.
These reported figures follow on from the news that lockdown had ‘depressed demand’ for new fleet and business cars in February 2021 (with 34% fewer sales than in February 2020), as revealed in a Fleet News article.
The lockdowns of last year (2020) in the UK resulted in a -680,076 deficit in new car registrations, 77% of which has been attributed to the first lockdown of March 2020.
In January 2021, there was also an increase in the number of both new and used vehicles in stock, linked with the reduction in sales, as franchised dealerships reported retaining stock for an average of 48.9 days in 2021, in comparison to 42.4 in 2020.
Philip Nothard added, “The opening of car showrooms on April 12 is a real opportunity for dealers to boost sales volumes after a hugely challenging 12 months. April and May could see a surge in new car sales, coinciding with the recent release of the new ‘21’ number plate.
“Less popular click-and-collect schemes, born out of necessity, will be supplemented hugely by the more standard showroom and test-drive experience that customers are used to. Furthermore, consumer spending in 2021 could well shift to the car market, since other large-scale purchases such as holidays abroad, continue to be surrounded by risk and uncertainty.”
We at Marshall Leasing are delighted to be able to continue to assist our fleet customers throughout the current lockdown, and trust that you find this information useful. If you would like to find out more about how our team of experts can assist you in creating an efficient plan for preparing to restart after lockdown, please do not hesitate to get in touch with us by emailing info@marshall-leasing.co.uk or calling 01480 414541.
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