New car sales plunge but virtual visits motor ahead

● Industry figures show 97% reversal in car registrations ● Lockdown sees surge in internet sales referrals

The UK’S new car market suffered its “worst performance in living memory” last month with a 97 per cent fall in registrations as the coronavirus pandemic closed showrooms, though there were signs of an increase in “virtual” visits.

Figures released by trade body the Society of Motor Manufacturers and Traders (SMMT) show that 4,321 new cars were registered in April – 156,743 fewer than in April 2019.

The coronavirus lockdown has led to car showrooms being closed and many potential customers being housebound.

SMMT chief executive Mike Hawes said: “With the UK’S showrooms closed for the whole of April, the market’s worst performance in living memory is hardly surprising.

“These figures, however, still make for exceptionally grim reading, not least for the hundreds of thousands of people whose livelihoods depend on the sector.

“A strong new car market supports a healthy economy and as Britain starts to plan for recovery, we need car retail to be in the vanguard.

“Safely restarting this most critical sector and revitalising what will, inevitably, be subdued demand will be key to unlocking manufacturing and accelerating the

UK’S economic regeneration.” The SMMT is forecasting that some 1.68 million new cars will be registered during the whole of 2020, which would represent a 27 per cent decline on last year.

James Hind, chief executive of Carwow, said: “We’ve seen a significant drop with an over 30 per cent drop in consumers browsing for new cars on Carwow but nowhere near the 97 per cent fall in registrations, showing that there are still lots of people in-market for a new car.

“Hurting the registrations figure further has been many consumers cancelling orders made before the crisis, citing uncertainty around delivery times or wanting to reduce their monthly outgoings in case they lose their jobs.”

Karen Hilton, chief commercial officer at online marketplace Heycar, said: “We are seeingevidencethatlockdown is creating a surge in interest among motorists while they are confined to their homes – with more and more browsing online and researching their next vehicle.

“Lockdown has also given people time to reflect on their way of life and we wouldn’t be surprised to see them increasingly opting for the safety and solitude of their vehicles postlockdown rather than crowded buses or trains.”

Meanwhile, the UK new light commercial vehicle (LCV) market declined 86.2 per cent in April. Hawes added: “Getting this important market moving again will be critical to the wider automotive sector’s recovery and provide a boost totheukeconomyaswebegin emerge from this crisis.”