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| New car registrations to see first rise this year | New car registrations to see first rise this year |
| (about 2 hours later) | |
| New UK car registrations went up in July for the first time this year, according to the motor industry. | New UK car registrations went up in July for the first time this year, according to the motor industry. |
| Figures from the Society for Motor Manufacturers and Traders are expected to show an 11% rise compared with the same month in 2019. | Figures from the Society for Motor Manufacturers and Traders are expected to show an 11% rise compared with the same month in 2019. |
| The last time there was an increase was in December last year. | The last time there was an increase was in December last year. |
| It follows four months of dramatic declines due to the effects of the coronavirus pandemic. | It follows four months of dramatic declines due to the effects of the coronavirus pandemic. |
| At the height of the lockdown in April, with dealerships closed and factories shut down, sales almost ground to a halt. | At the height of the lockdown in April, with dealerships closed and factories shut down, sales almost ground to a halt. |
| The figure of about 175,000 new car registrations in July will offer some welcome relief to an industry which has suffered significant harm as a result of the coronavirus pandemic. | The figure of about 175,000 new car registrations in July will offer some welcome relief to an industry which has suffered significant harm as a result of the coronavirus pandemic. |
| Now a recovery appears to be under way. But although new registrations have risen sharply, concerns remain about the true health of the sector. | Now a recovery appears to be under way. But although new registrations have risen sharply, concerns remain about the true health of the sector. |
| People within the industry believe that the increase simply reflects pent-up demand from consumers who had been planning to buy new vehicles earlier in the year, but were unable to do so. | People within the industry believe that the increase simply reflects pent-up demand from consumers who had been planning to buy new vehicles earlier in the year, but were unable to do so. |
| With the government's job retention scheme coming to a close in October, and many companies now laying off staff, there are concerns that a fall in consumer confidence could hurt future sales. | With the government's job retention scheme coming to a close in October, and many companies now laying off staff, there are concerns that a fall in consumer confidence could hurt future sales. |
| Meanwhile, registrations for the year as a whole are expected to be 30% lower than they were in 2019. | Meanwhile, registrations for the year as a whole are expected to be 30% lower than they were in 2019. |
| Andy Barratt, managing director of Ford of Britain, which employs about 14,000 people in the UK, said he was "pleased to see any rise in consumer demand, but I don't think this is a long term indication of a V-shaped recovery". | |
| He told the BBC's Today's programme: "I think that there will be reasonable demand through September, when the registration plate changes, but without government intervention this sector won't recover until at least the middle of next year." | |
| He said a key consumer stimulus would be incentives to change older vehicles for new ones, especially help towards changing more polluting cars for cleaner ones. | |
| Hard work ahead | |
| Rachael Prasher, managing director of What Car?, said the latest SMMT figures were good news, but she also warned against reading too much into the figures. | |
| "This is very welcome news to the UK's automotive sector and a testament to all the hard work put in to kickstart the industry by dealers and manufacturers as lockdown eased. | |
| "After nearly three months of closed doors, it is great that the industry has demonstrated its remains so robust. | "After nearly three months of closed doors, it is great that the industry has demonstrated its remains so robust. |
| "However, with this month's success driven largely as a result of pent-up demand and lease cycles there is still much hard work to do ahead." | "However, with this month's success driven largely as a result of pent-up demand and lease cycles there is still much hard work to do ahead." |