05 Oct 2020
Posted in Automotive
September decline in UK car market underlines huge sector challenges ahead
Following the news that the UK’s new car market was down 4.4% in the month of September, according to data released by the Society of Motor Manufacturers and Traders (SMMT);
David Leggett, Automotive Analyst at GlobalData, a leading data and analytics company, offers his view:
“September’s year-on-year UK car market decline is against a weak comparison base last year and is disappointing. The recovery of new car demand following the relaxation of COVID-19 lockdown restrictions in June continued, but the latest data suggests the rebound is now running out of steam as pent-up demand is met.
“Underlying business and consumer confidence remain extremely fragile while the health crisis persists, along with huge uncertainties for the UK economic outlook over the next year. That is clearly hitting fleet demand, in particular, with SMEs especially wary of making investments in the current climate.
“The UK’s automotive retail and manufacturing sector is in for a bumpy ride over the next six months.”