According to the report from the Society of Motor Manufacturers and Traders (SMMT), the UK new car market fell by almost a third (-29.4%) in 2020, with annual registrations dropping to 1,631,064 units. A -10.9% decline in December wrapped up a turbulent 12 months, which saw demand fall by 680,076 units to the lowest level of registrations since 1992

Against a backdrop of Covid restrictions, an acceleration of the end of sale date for petrol and diesel cars to 2030 and Brexit uncertainty, the industry suffered a total turnover loss of some £20.4 billion

Private vehicle demand fell by -26.6% overall, amounting to a £1.9 billion loss of VAT to the Exchequer. The year also saw -31.1% fewer vehicles joining large company car fleets.

In an atypical year, demand fell across all segments bar specialist sports, which grew by 7.0%, although Britain’s most popular class of car remained the supermini, retaining a 31.2% market share despite a -25.9% decline in registrations. Meanwhile, although falling by a combined -32.9%, petrol and mild hybrid (MHEV) petrol cars made up 62.7% of registrations, while diesel and MHEV diesels, down -47.6%, comprised almost a fifth (19.8%) of the market.