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Slow new car market recovery predicted by Cox Automotive
Date: 14 April 2021 | Author: Sean Keywood
The UK new car market will bounce back in the second quarter of 2021 due to pent-up demand, but more slowly than after the first Covid-19 lockdown last year, according to Cox Automotive.
The automotive services firm has released its latest quarterly insight report, which says that retailers can expect a boost as the latest lockdown measures are relaxed.
However, it says some nervousness remains among buyers, and therefore predicts Q2 to see 520,835 new car registrations, down 5.9% on the pre-pandemic average from 2000-2019.
Customer insight and strategy director Philip Nothard said: "This scenario assumes some modest pent-up demand in April and May, but with some consumer nervousness remaining, it is likely that retail activity won't recover fully.
"This also assumes a continuation of the same supply constraints we are currently witnessing."
Nothard said Cox Automotive had seen an increase in fleet volumes, which could have been a result of incentivised activity during the first quarter of the year.
As for the used market, the firm expects supply shortages to have an impact throughout Q2 until lower mileage vehicles hit the market.
