How has the car market been affected by covid-19?

The coronavirus pandemic has had a huge impact on businesses across the world, and the automotive industry is no exception. Not only are companies facing financial difficulties, but problems with manufacturing, sales and supply chains. Here, we explore a few ways that covid-19 has impacted the car market and what this may mean to you as a consumer.

Dealership closures

Lockdown 2.0 came into effect on the 5th November 2020 in the UK, as announced by the government. The rules say that all non-essential shops must shut, so many dealerships across the country are now closed to the public. If you’re on the hunt for a new car this means that you can’t go in person to shop, but you may still be able to browse online. For instance, if you’re searching for a Kia Sportage, Seat Ibiza or a new Citroen C3 for sale, you may be able to click and collect from your chosen dealership. It’s worth having a look online to see what’s available until the dealerships re-open.

Used car sales decline

The Society of Motor Manufacturers and Traders (SMMT) published new data in August, saying that the UK used car market has declined by a whopping 48.9% in quarter two of the year. This is perhaps unsurprising in the current climate if buyers are concerned about purchasing used models due to health and safety concerns surrounding coronavirus. With another national lockdown in place and a turbulent road ahead, it remains unclear when the used car market will get back on its feet. 

Delays for new car owners

If you have recently ordered a new car or are considering buying a new model soon, it’s likely that you’ll experience some delays. The global automotive market has seen huge disruption due to the pandemic, with many manufacturers facing issues like reduced workforces due to social distancing measures and disrupted operations. Cars may not be able to be built at the same speed as before, particularly if supply chains are affected and parts can’t be sourced. Builds may also take longer if less people are working in factories and operations management.

These are just some of the ways that the car market has been impacted by covid-19. With further uncertainty and difficult times ahead, only time will tell how the pandemic will affect manufacturers in the long term.