UK new car sales slump to 21-year low in September

Registrations fell 33.2 per cent in the first nine months of the year

The SMMT warned that the industry faces 'myriad challenges' during the remainder of the year (Reuters)

New car sales slumped to a 21-year low last month, industry figures show.

The number of registrations fell 4.4 per cent to 328,041, the weakest September performance since 1999, the Society of Motor Manufacturer and Traders (SMMT) reported.

September is usually a strong month for UK car sales, with the introduction of new plate numbers. However, this year's sales came in 15.8 per cent below the September average for the past decade.

Demand for electric vehicles was one of few positives in an otherwise gloomy set of data for the UK's car industry, which has been hurt by Brexit and the coronavirus.

Battery electric vehicle registrations increased 183.4 per cent, with 60,647 hybrid and electric vehicles sold during the month, compared with 176,532 petrol and 46,996 diesel.

Overall, registrations were down 33.2 per cent in the first nine months of the year compared with the same period in 2019.

The SMMT’s chief executive, Mike Hawes, said: “During a torrid year, the automotive industry has demonstrated incredible resilience, but this is not a recovery.

“Despite the boost of a new registration plate, new model introductions and attractive offers, this is still the poorest September since the two-plate system was introduced in 1999.

“Unless the pandemic is controlled and economy-wide consumer and business confidence rebuilt, the short-term future looks very challenging indeed.”

The SMMT warned that the industry faces “myriad challenges” during the remainder of the year, including Brexit uncertainty, the investment required to develop zero-emission-capable vehicles, and the difficulty in achieving climate change targets amid stalling demand for new cars.

It expects the number of new cars registered during the year as a whole to be about 30.6 per cent lower than in 2019, which is equivalent to £21.2bn in lost sales.

James Fairclough, chief executive of AA Cars, said: "Dealerships are frantically playing catch-up for the months of sales lost during lockdown. Even though many have made great strides over the summer, the winter months will be decisive in determining how sustainable the momentum is.

“Drivers’ concerns about the stability of their finances could also be pegging back demand for new cars and prompting many to look for better value on the secondhand market instead.”

Additional reporting by PA Media