Car sales bounce back
[2 July 2020] We’re a nation of car lovers. In 2018, there were over 1,180,000 vehicles registered in NI, 83% of which were cars. As with most other industries, the motor trade was badly impacted by the Coronavirus pandemic, with a complete shutdown across the sector. Only 144 new cars were sold in NI throughout May, however this is an improvement from April when just 24 were sold (Society of Motor Manufacturers and Traders).
Car buying post-lockdown
As we re-emerge on the other side of lockdown, there have been changes and innovations to how we purchase cars, including the introduction of more online ordering, with Mercedes Benz one manufacturer offering home delivery on new and used cars.
Car showrooms were permitted to reopen on 8th June and the appetite for new wheels remains strong. What Car? Research showed that almost one fifth of car buyers were preparing to buy a new car once lockdown restrictions were lifted.
In England, the recovery has been seen already, with sales of used cars up by 3.4% in the first 10 days of June, compared with the same period in 2019, according to INDICATA. In the week from 4th – 10th June, used car sales saw growth of 13.3% YoY, equating to around 12,000 per day which is similar to pre-lockdown figures. Google Trends show a drop off in searches for ‘new car’ in Northern Ireland around the time lockdown was introduced, however interest is picking up quickly.
Car use could rise by 7%
Research from the Active Travel Academy at Westminster University has estimated that lockdown and the subsequent social distancing requirements could increase car usage by as much as 7%, putting up to one million additional cars on the roads in England and Wales.
As China exited its lockdown, early indications showed an increase in individual car use, as passengers avoided public transport. By mid-April, congestion in major Chinese cities was around 90% of pre-lockdown levels, while subway use hovered around 50%.
Young adults are also considering the purchase of a car, possibly as a type of revenge buying – the frustration of being locked up at home has given a desire for freedom. In China, 65% of young adults are considering the purchase of a new car, in the UK, it’s just under 40%.
Targeted communications to car buyers
At PML Group, our bespoke mapping system allows us to target campaigns to point of interest or locations, highlighting OOH formats within proximity to venues, e.g. car showrooms. While this is obviously relevant for those selling cars, associated industries such as insurance brands shouldn’t overlook this targeted approach. Additionally, with research demonstrating younger audiences are considering car purchasing, those brands aiming towards particular demographics should consider all the locations that those people are likely to visit.
