MG bucks the trend by driving up sales while others slump
The number of new cars sold in the UK has fallen by almost a third in the last year – but one famous name based in the West Midlands managed to buck the trend.
The coronavirus crisis and uncertainty over Brexit saw sales slump for most brands.
New car registrations were 1.63 million for 2020, the lowest since 1992.
The Society of Motor Manufacturers and Traders’ figure represents a fall of around 29 per cent on 2019, the biggest year-on-year decline since 1943.
Jaguar Land Rover, which has its i54 engine factory alongside junction two of the M54, also saw falls in sales of its luxury cars in the country. Land Rover was down 23.5 per cent to 58,505 with Jaguar slipping 29.2 per cent to 25,513.
But MG, which has its headquarters at Longbridge, bucked the trend with a 40.8 per cent rise to 18,415. Its cars are made in China, but design work is carried out in the West Midlands.
MG, which also saw UK sales treble in the three years to 2019, has been helped by the introduction of new electric models. The subsidiary of Chinese manufacturer SAIC aims for worldwide sales of a million by 2024.
The top selling car in the UK was the Ford Fiesta at 49,174.
The SMMT announced that 2020 was a record year for sales of electric and plug-in hybrid cars, accounting for around one in 10 of all sales.
Relief
The SMMT believes that based on current investment intentions, the UK should have capacity to produce 250,000 battery cars (BEVs) a year by 2024, but will need a huge increase in investment to produce one million BEVs by 2030.
SMMT chief executive Mike Hawes estimated that £16 billion needed to be spent on plug-in infrastructure as so many motorists do not have a driveway and have to park on streets.
He said the last-minute Brexit trade deal was a “massive relief” to the automotive industry, avoiding a no-deal “disaster”, but he added that companies will still face more administration and red tape.
The bulk of 2020’s lost sales happened during the first lockdown in the spring, when showrooms were forced to close, and factories shut down.
“We lost half a million units from March, April, May – and we never recovered them,” said Mr Hawes.
The restrictions introduced later in the year were less damaging, largely because dealers were able to sell cars remotely, using ‘click and collect’ services. That is also the case during the new lockdown, which was announced on Monday.
“We can still do click and collect, which is important, because that’s the very minimum we need. Not just to keep retail going, but also to keep manufacturing going,” added Mr Hawes.
He said the Covid crisis has cost the car industry £20 billion in total.
