UK new car market declined in 2020

The UK new car market fell by almost a third (29.4 per cent) in 2020, according to figures published by the Society of Motor Manufacturers and Traders (SMMT).

A -10.9 per cent decline in December wrapped up a turbulent 12 months, which saw demand fall by 680,076 units to the lowest level of registrations since 1992.

Against a backdrop of COVID restrictions, an acceleration of the end of sale date for petrol and diesel cars to 2030 and Brexit uncertainty, the industry suffered a total turnover loss of some £20.4 billion.

Private vehicle demand fell by -26.6 per cent overall, amounting to a £1.9 billion loss of VAT to the Exchequer.

The year saw also saw - 31.1 per cent fewer vehicles joining large company car fleets.

Demand fell across all segments bar specialist sports, which grew by 7.0 per cent, although Britain’s most popular class of car remained the supermini, retaining a 31.2 per cent market share.

Meanwhile, although falling by a combined - 32.9 per cent, petrol and mild hybrid (MHEV) petrol cars made up 62.7 per cent of registrations, while diesel and MHEV diesels, down -47.6 per cent, comprised almost a fifth (19.8 per cent) of the market.

It was, however, a bumper year for battery and plug-in hybrid electric cars, which together accounted for more than one in 10 registrations – up from around one in 30 in 2019.

Demand for battery electric vehicles (BEVs) grew by 185.9 per cent to 108,205 units, while registrations of plug-in hybrids (PHEVs) rose 91.2 per cent to 66,877.

SMMT described 2020 as a ‘lost year’ for the automotive industry.