The sea of gleaming metal: Thousands of brand new cars wait to be sent to UK dealerships – as hard-hit industry records first monthly sales rise since Covid
- New car sales have increased after dealerships reopened across the country following the Covid-19 lockdown
- Sales in July 2020 are 11 per cent up on the same month in 2019 according to the figures from the industry
- July was the first time dealerships were allowed to open for a full month since back in February
- The Society of Motor Manufacturers and Traders said they hope buyers will return to their showrooms
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The automotive industry has recorded this year’s first monthly increase in sales, following the reopening of dealerships.
Some 174,887 cars were registered in July, according to the Society of Motor Manufacturers and Traders (SMMT).
This is up 11.3 per cent compared with the same month in 2019.
July was the first time dealerships across the UK were open for a full month since February, due to the coronavirus lockdown.
Thousands of new cars have been parked at the Rockingham Motor Speedway in Corby, Northamptonshire ahead of their delivery to dealerships around the country
Thousands of cars are being stored in Corby, Northamptonshire ahead of their delivery to dealerships around the country
The cars are being stored at the former Rockingham Motor Speedway track in Corby, Northamptonshire
The SMMT said pent-up demand and special offers led to ‘a reprieve for the sector’.
But despite the monthly increase, registrations for the first seven months of the year are down 41.9 per cent.
SMMT chief executive Mike Hawes said: ‘July’s figures are positive, with a boost from demand pent up from earlier in the year and some attractive offers meaning there are some very good deals to be had.
‘We must be cautious, however, as showrooms have only just fully reopened nationwide and there is still much uncertainty about the future.
‘By the end of September, we should have a clearer picture of whether or not this is a long-term trend.
‘Although this month’s figures provide hope, the market remains fragile in the face of possible future spikes and localised lockdowns as well as, sadly, probable job losses across the economy.
‘The next few weeks will be crucial in showing whether or not we are on the road to recovery.’
Rachael Prasher, managing director of automotive magazine and website What Car?, said: ‘This is very welcome news to the UK’s automotive sector and a testament to all the hard work put in to kickstart the industry by dealers and manufacturers as lockdown eased.
‘After nearly three months of closed doors, it is great that the industry has demonstrated it remains so robust.
‘However, with this month’s success driven largely as a result of pent-up demand and lease cycles, there is still much hard work to do ahead.’
The Society of Motor Manufacturers and Traders said new car sales are down 41.9 per cent over the first seven months of the year, though they are hopeful for a sales bounce after the reopening of showrooms
According to the SMMT, the next couple of weeks will be crucial in determining whether the industry is recovering after Covid-19