Mega-increase in UK car sales as the UK surges in confidence

UK Car sales have recently risen massively, by 3000%, Reuters reports.

The massive spike in sales came after dealerships reopened in April. This has come in line with the government's road map which saw non-essential shops and venues re-open, with social distancing and mask-wearing however still in place. As the world emerges back to society once again, consumers are growing in confidence, buying luxury goods with saving money that they have not had to spend in the past 14 months. Furthermore, with the ceasement of new license owners passing their practical exams being able to buy first cars, the demand for cars has risen as dealerships and second-hand trading resumes too, thus pushing sales even higher.

New registrations stood at 141,583 vehicles for April 2021, according to the Society of Motor Manufacturers and Traders, an increase from 4,321 in April 2020, the lowest level of any month since 1946. April 2020 saw a massive decrease in car sales as this was a period just prior to the lockdown, consequently, dealerships closed. This had detrimental impacts on car dealerships who all of a sudden lost the ability to trade, and with face-to-face marketing being one of the main ways to sell cars, this was halted and sales dropped. Furthermore, cars are not an item typically bought online, as smaller items such as take-aways and even shopping can now be delivered to your door, cars cannot as easily. As well as this consumers had little confidence over buying a car online as they did not have the first-hand experience of sitting in the car and witnessing its features and flaws. Dealerships reopened to the public from April 12 in England while delivery services were still operational during the pandemic. As a result of the reopening of car sales venues, this has increased production once more for cars and the sales of cars too. This means due to the lack of supply experienced during the pandemic, many staff were laid off or placed on furlough to cut operation costs and preserve the little profits that firms made. However as production has now increased again, firms are able to employ more people and somewhat return to pre-covid ways, making more revenue and organising full production.

However, last month's performance was still 13% below the 2010-2019 average.

This proves that although we are on the right steps to economic recovery, there is still in fact a long way to go, and not all consumers are confident with current markets. Following on from this, the new Indian variant which has struck pandemonium in India is very threatening if it does in fact come across to the UK, and can put lockdown and further restriction in a very likely prospect if this was to unfold. But, "After one of the darkest years in automotive history, there is light at the end of the tunnel," said SMMT boss Mike Hawes. (Reuters) This once again comes with the government's road map which is set to ease restrictions in their entirety by 21st June and life should phase back to normality. This therefore will boost confidence levels even further, and subsequently re-light the dark years that have opposed the automotive sector. "A full recovery for the sector is still some way off, but with showrooms open and consumers able to test drive the latest, cleanest models, the industry can begin to rebuild."

This, therefore, shows the lasting impact the lockdowns have had on our society and the way we live. It has proved to harm UK consumer and business confidence, with people still reluctant to spend, but does however show promising signs of recovery and rehabilitation. The 3000% increase in car sales is a direct illustration of this and represents the road to normality we are inevitably on, which is now in very close sights.


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Written by Euan Taylor

Research compiled by Hubert Kucharski


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