UK new car market plummets 97.3% on year in April; coronavirus weighs: SMMT

UK new car registrations fell off a cliff in April, down 97.3% on the year at 4,321 units, according to figures published Tuesday by the Society of Motor Manufacturers and Traders, or SMMT.

The data marked a record low for the new car market as the coronavirus pandemic forced the country into lockdown for the entire month, with showrooms closed and car buyers housebound.

SMMT expects 1.68 million new car registrations for full year 2020, the lowest since 1992.

"The decline was the steepest of modern times, and is in line with similar falls across Europe, with France down 88.8% and the Italian market falling 97.5% in April," said the organization.

Looking at the data, fleet orders represented bulk of the market in April, soaking up 71.5% of demand, equivalent to 3,090 units, while private buyers registered just 871 cars -- a year-on-year fall of 98.7%.

"The distortion was reflected across all segments and fuel types, with the numbers of new petrol and diesel cars joining UK roads down 98.5% and 97.6%, respectively, as plug-in hybrid vehicles (PHEVs) declined 95.1% and hybrids (HEVs) -99.3%. Meanwhile, the niche battery electric vehicles sector saw a smaller percentage decrease of 9.7%, as some preordered deliveries of the latest premium models were able to be fulfilled," added SMMT.

Owing to the highly distorted data, overall battery electric vehicles now account for 31.8% of the overall market share, from 0.9% a year ago.

One broker told S&P Global Platts that he does not hold out much hope for EVs, in the short term at least. "I expect demand for big ticket items like EVs will be subdued in the near term, unless there are some very attractive deals," said the broker.