UK car market will see more sales and digital push as crisis eases

Following the news that UK new car sales in the month of April fell by 97% as the market was effectively frozen under lockdown rules;

David Leggett, Automotive Analyst at GlobalData, a leading data and analytics company, offers his view:

“With dealerships shuttered across the country, the stark April sales result came as no surprise.

“However, attention will now be turning to a resumption of new vehicle sales under UK Government plans to get people back to work and reboot the economy.

“The vehicle market and restarting the UK’s domestic automotive industry will be high on the government’s agenda as it looks to ease lockdown restrictions. Vehicle manufacturers and retailer groups will be looking very hard at ways to sell cars and light vans – essential for the goods delivery sector – while maintaining social distancing.

“We can expect to see a push towards digital offerings at the retail end of the business. This will result in more online sales and virtual showrooms, as well as click and collect delivery working in combination with the operation of social distancing at dealerships.

“Although the UK new car market has taken a heavy hit under the COVID-19 crisis and demand will clearly take time to recover to near normal, more sales are expected to come through in the coming months as the government eases lockdown restrictions and reopens the economy.”

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