July surge of UK vehicle sales put rest of Europe in the shade, but market expected to be 28-30% down at year end, according to latest research from GlobalData

July surge of UK vehicle sales put rest of Europe in the shade, but market expected to be 28-30% down at year end, according to latest research from GlobalData

 

– July UK light vehicle sales totalled *203,000 – a whopping +10.6% YoY increase

– Total UK light vehicle sales market expected to be **28-30% down at year end, according to latest GlobalData estimates.

– Western Europe light vehicle sales in July totalled ***1.3 million, down -1.9% YoY.

July light vehicle sales in Europe provided surprises aplenty, not least in the UK. Without incentives or a scrappage scheme in place, UK sales totalled over *203,000 – a whopping 10.6% ahead of last year. However, the UK market is still expected to be **28-30% down at year end, according to the latest data from GlobalData, a leading data and analytics company.

The UK industry has been vociferous in calling for support for the sector and has looked on in envy as a raft of measures have been announced for the service and hospitality sector.

Calum MacRae, Automotive Analyst at GlobalData, commented: “July’s hike amounted to deferred purchases from lockdown. The result’s slightly curious as one might think consumers would defer until September’s new registration; however, automakers have been very aggressive with incentives and attractive deals look to have tipped the balance.

“As the furloughing scheme ends in October, we’ll start to see a truer economic picture. All indications at the moment don’t bode well for the UK light vehicle sales market, with GlobalData estimates still predicting it to be 28-30% down at year end – more damaged than other European markets that have been beneficiaries of government support.”

In Western Europe light vehicle sales for July totalled ***1.3 million, just 1.9% behind last year’s. The month represented the market’s strongest showing since the onset of the COVID-19 crisis.

The incentive fuelled markets of Spain, Germany and France all showed an improvement in sales. Italy, which is expected to announce a scrappage scheme shortly, narrowed its year-on-year fall to ****10.8%.

MacRae added: “July’s results beg the question if the UK industry is resilient enough without concerted government support? August is a relatively quiet month for sales as the market gears up for September’s plate change. Only by the end of September will we be able to tell if it’s a sustainable recovery.”

*     source: SMMT (Society of Motor Manufacturers and Traders)
**    source: GlobalData Total UK light vehicle sales estimates, July 2020
***   source: KBA, SMMT, ANFAC, ANFIA and CCFA
****  source: ANFIA

More Media