UK Car Production And Demand For Private Vehicles Still Increasing

According to the Society of Motor Manufacturers and Traders (SMMT), the UK produced 17.3% of cars in the first four months of 2021, compared to the same time last year. Industry experts claim that this figure is still low because of the challenges faced in 2020. As the pandemic lockdown restrictions slowly lifted, people began looking online for the best price on car batteries so that they could replace their old ones, which may have been drained whilst in storage for a long time. Experts recommend getting the best car batteries with the best features, such as power retention even when left unused for an extended period.

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The SMMT recorded the production of 68,306 cars in the UK just last month. While this was a significant increase year on year, it was still 3.8% lower compared to April of 2019. And, on a five-year average, the production of cars was down by 42.9% for April. The SMMT said that this reflected the scale of the auto industry’s challenges while recovering from the pandemic’s adverse effects.

On the upside, 83.3% of cars made in the UK are being sent overseas, which means that the foreign markets are in good shape. These have mostly been exported to countries included in the European Union, which demonstrates the importance of the relationship between the country and the EU. Even with Brexit, the UK still continues tariff-free trade with EU member states.

Large Investments Still Needed

Mike Hawes, SMMT chief executive, said that while the shortage of semiconductors remains a big challenge for UK car manufacturers, the UK is on track with the fight against Covid-19 and its roadmap of returning to normal. With that being said, there is still a strong domestic demand for cars.

Hawes also said that the industry needs a significant investment for it to return to its previous peak of producing cars. He mentioned that there should be flexibility in the workforce and productivity to drive down vehicle manufacturing costs. Other key areas are the improvement of the workforce in terms of their skills and training of new techniques in building cars that will meet the demands of future drivers. An increase in knowledge in manufacturing may lead to better overall production and the best prices on car batteries and other vehicle parts.

With more certainty after Brexit, Hawes said that this is a chance for the UK to put more investment proposals to boardrooms. The country needs to promote the industry and work with the government to maintain its competitiveness on a global scale.

Increased Car Demand

The pandemic has been instrumental in shifting the mindset of people around using public transportation. As people want to avoid commuting publicly as much as possible, they are now turning to private vehicles. This move is one of two perceived factors driving the prices of cars upwards. The other factor is the decrease in supply because of the semiconductor shortage crisis.

It has been reported that new car sales have jumped by 3,000% from April year-on-year as dealerships were allowed to reopen. In addition, registrations were at 141,583, according to the SMMT. While the increase seemed like a good figure, it was still lower by 13% when considering the 2010-2019 average.

2020 was one of the darkest years in the automotive industry, said Hawes, but a full recovery is still over the horizon. The positive results from the opening of dealerships and showrooms show that the industry can rebuild itself again.

When it comes to used cars, dealerships are also anticipating how their stock portfolio is going to affect the prices of vehicles. For used cars, the stock is usually replenished depending on the lease returns from fleet and rental outlets. But the pandemic has affected how their process works, which has changed the system altogether.

A report from Motor.co.uk says that prices across the top 50 makes and models of cars on their website have decreased by an average of 1.9%, which is the first time that has happened in 2021.

With the demands still being high and the stocks getting low, dealers see an opportunity to hold firm on the prices they posted to get more profit and return.

Diesel cars are selling fast, being sold at an average of 37 days after being posted compared to 40 days average for petrol cars, according to Motor.co.uk.

Flourishing Sector

One sector that hasn’t been too hampered by the pandemic, and arguably even flourished, was the classic car sector. The demand for these cars may have been due to a pent-up desire to get out of the lockdown situation, as well as the increase in online auctions where it is easier to purchase something on a whim. The Bank of England said there is approximately a combined £100 billion in disposable wealth in people’s banks.

The editor of Hagerty UK Price Guide, John Mayhead, said that the upward shift in the classic and collector car market was first seen last summer when the first lockdown was lifted. He added that the trend has continued, and although not as strong as before, it was enough to keep the industry going.

According to Hagerty’s data, the annual price change is upwards of 1.5%, but from January to March of 2021, it was 2%. Mayhead said that despite wintertime and restrictions, people are still buying classic and collector cars.

Getting the Right Battery Every Time

With the increase in demand for cars in general, it is crucial to keep in mind that maintenance is key to a great performing vehicle. When you’re buying a used or a vintage car, consider replacing the old battery with the best car battery available to avoid any problems on the road.

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Published at: 22-06-2021