UK August new car registrations fall 5%

UK August new car registrations fell 5% year on year, according to data from the Society of Motor Manufacturers and Traders (SMMT) released on Friday.

Around 88,000 new cars were registered compared with 92,573 a year earlier, the SMMT said, and warned that August was usually one of the quietest months for sales as it preceded the change of number plates in September.

Car sales have slumped during the coronavirus lockdown as showrooms were forced to close with demand down 97.3% in April, 89.0% in May and 34.9% in June.

There was an 11.3% increase in July as restrictions were lifted and the sector was boosted by pent up demand and special offers.

Ian Plummer, director at online marketplace Auto Trader, said: “A number of our retail and brand partners had already reached their targets mid-way through the month … so there was little inclination or need to push sales activity.

“What seems far more significant is the outlook for September and beyond, which remains positive as the industry continues its recovery from lockdown.”

SMMT chief executive Mike Hawes said the fall was “disappointing, following some brief optimism in July”.

“However, given August is typically one the new car market’s quietest months, it’s important not to draw too many conclusions from these figures alone.”

“With the all-important plate change month just around the corner, September is likely to provide a better barometer. As the nation takes steps to return to normality, protecting consumer confidence will be critical to driving a recovery.”