New-car market faces long recovery
New-car sales in the UK during May 2021 were well down on the month’s average from the past decade, despite bouncing back from the low levels of last year when Covid-19 kept most showrooms shut.
A total of 156,737 units were sold last month for an almost eightfold increase from the same month a year ago, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).
However, the figure was down 14.7 per cent from 183,724 registrations in May 2019 and 13.2 per cent lower than May’s 10-year average of 180,489 units.
Buying activity last month was in line with the most recent industry outlook, published in April, which predicts the sector will sell about 1.86 million new vehicles by the end of the year. The year-to-date total so far is 723,845.
Plug-in vehicles now comprise 13.8 per cent of new-car registrations, up from 7.2 per cent at the same stage a year earlier, with the most rapid growth seen in plug-in hybrid (PHEV) derivatives.
Pure petrol and mild hybrid petrol cars account for 60.4 per cent of sales so far, while pure diesel and mild hybrid diesels took an 18 per cent share year to date, compared to 64.6 per cent and 22.4 per cent after the first five months of last year respectively.
Total registrations for 2021 are currently 296,448 fewer units, or 29.1 per cent less, than the average recorded across January to May during the past decade.
Mike Hawes, SMMT chief executive, says this is evidence of the scale of the recovery still needed given the impact of Covid on the market.
“With dealerships back open and a brighter, sunnier, economic outlook, May’s registrations are as good as could reasonably be expected,” he adds.
“Increased business confidence is driving the recovery, something that needs to be maintained and translated in private consumer demand as the economy emerges from pandemic support measures.
“Demand for electrified vehicles is helping encourage people into showrooms, but for these technologies to surpass their fossil-fuelled equivalents, a long-term strategy for market transition and infrastructure investment is required.”
