Here is the disaster: the collapsed car market in one of Europe’s strongest countries



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The second wave of the epidemic and the austerity measures taken to curb it have put UK car manufacturers in an even more difficult position. In addition to the uncertainty associated with Brexit and the transition to new technologies, the sector is also facing a drastic drop in demand. Seeing car sales in July, many became optimistic, but the August, September and October sales figures released by the British Automobile Manufacturers and Dealers Association (SMMT) were sobering. The latest statistics released by SMMT in November also show that many are starting to have unfounded hopes for a turnaround. It appeared that

IN THE LAST MONTH ONLY 113,781 PASSENGER CARS WERE REGISTERED, A 27.4 PERCENT DECREASE FROM NOVEMBER 2019.

It’s worth noting that the latest example of a similar low volume of sales happened in November during the 2008 economic crisis, when 100,333 new cars were launched in the UK. For the year so far, it can be said that just over 1,498 million cars have been sold, a decrease of nearly 31 percent from the same period last year. Fleet sales (-22.1%) and sales to private individuals (-32.2%) also fell dramatically compared to November 2019. Of course, the forced shutdown caused a significant loss for car manufacturers and dealers: according to calculations by SMMT, we are talking about a loss of revenue of about 1.3 billion (about 516 billion forints) due to the fact that 42,840 fewer cars were sold than in November 2019.

It’s no surprise, however, as we wrote last month that the fall of the UK car market could be enveloped in November as UK politicians voted for a four-week shutdown to curb the second wave of the coronavirus epidemic. It also meant that car dealerships in England were closed for weeks. However, there was no collapse like the one in the spring, thanks to the fact that the industry was already ready for full shutdown and was able to resolve the delivery of the cars ordered.

No wonder then that SMMT further deteriorated its forecast for this year a few weeks ago: by mid-October, it was estimated that 1.66 million cars could be sold in the UK by 2020

NOW ONLY 1.56 MILLION CARS ON SALE.

If this is indeed the case, it means that there are about 750,000 fewer new cars registered in the island state this year than a year earlier. The last example of such a weak year was in 1982.

The sale of electric cars is revolving

The SMMT report found that while sales of internal combustion engine vehicles fell sharply this year, sales of partial or all-electric models have skyrocketed. In addition to the available subsidies, the fact that many different electric models are now available on the British car market also plays an important role.

SALES OF BATTERY ELECTRIC VEHICLES ARE UP OVER 122 PERCENT IN NOVEMBER 2019 AS THE SAME PERIOD PLUG-IN HYBRID MODELS ARE NEAR 77 PERCENT

In comparison, diesel car sales were down more than 56 percent, while petrol passenger cars were down nearly 42 percent last month from November 2019. It’s also worth noting that more plug-in cars (18,062) were introduced last month the UK sold than the number of diesel powered vehicles (15,925).

Statistics published by the British Automobile Manufacturers and Dealers Association also showed that the Vauxhall Corsa was the most popular model last month (3,718) in terms of sales figures on the island. Next in line were Volkswagen Golf (3,625), Mercedes-Benz A-Class (3,243), Nissan Qashqai (3,073) and Ford Focus (2,922).

Cover Image Source: Andrew Matthews / PA Images via Getty Images




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