Registrations warm up as summer starts
UK new car registrations fell 34.9% in June, up from the 89% fall reported in May, according to the Society of Motor Manufacturers and Traders (SMMT).
It reported that there were 145,377 new registrations last month, with the shortfall largely attributed to the fact that dealerships in Wales and Scotland remained closed for much of the month.
The market is almost 616,000 units, or 48.5%, behind the same period last year, with some 240,000 private sales lost since consumers were told to stay at home and retailers forced to close, resulting in an estimated £1.1bn loss to the treasury in VAT receipts alone.
Mike Hawes, SMMT chief executive, said, “While it’s welcome to see demand rise above the rock-bottom levels we saw during lockdown, this is not a recovery and barely a restart. Many of June’s registrations could be attributed to customers finally being able to collect their pre-pandemic orders, and appetite for significant spending remains questionable.
“The government must boost the economy, help customers feel safer in their jobs and in their spending and give businesses the confidence to invest in their fleets. Otherwise it runs the risk of losing billions more in revenue from this critical sector at a time when the public purse needs it more than ever.”
