The top car trends to look out for in 2021
The uncertainty and turbulence of 2020 has shaken the UK car market, with sales down a predicted 30% according to the Society of Motor Manufacturers and Traders (SMMT). Motorists and dealerships alike are looking to 2021 with a glimmer of hope in their eyes that the pandemic might soon come to an end and life may return to normality. But what should we expect from the 2021 UK car market? Here are our top five predictions for 2021.
A slow start
With furlough being wound down and uncertainty around Brexit, it’s likely that 2021 will have a slow start when it comes to the UK car market. When people feel unsure about their financial stability, they’re unlikely to commit to big purchases such as a new vehicle. Whilst sales are predicted to increase from around 1.6 million in 2020 to 2 million in 2021, this still represents a 13% decline on the average sales figures from 2001 to 2019, indicating that demand will still be down in 2021. Department for Transport data suggests that Brits are now favouring private transport over public transport – likely caused by pandemic fears. This means that the number of UK car owners is likely to continue to rise as people look for alternatives to buses and trains. It’s likely that 2021 will begin slowly, with car sales gradually increasing as job certainty increases and the post-Brexit future becomes clearer.
The best of British
A no-deal Brexit will mean an increase in the prices of many new cars, with World Trade Organisation (WTO) tariffs on imported cars currently set at 10%. This would see the Ford Fiesta rise in price by over £1,000 whilst a Volkswagen Golf would increase in price by almost £1,400. Vauxhall, Ford, Peugeot and Mercedes-Benz have already confirmed that their prices will rise if a no-deal Brexit goes ahead. Many other manufacturers have said that they will need to review their prices going forwards to account for the new import tariffs. These price hikes are likely to shift the balance towards cars which are manufactured in the UK and hence have a lower price point. These include many Land Rovers, Jaguars and Minis. Cars which are manufactured outside the EU such as Nissan, Honda and Mazda will be unaffected by Brexit as they are already operating under the regulations of the World Trade Organisation.
The uprise of electric
With the UK moving to ban the sale of new petrol and diesel cars by 2030, electric vehicles are quickly gaining in popularity. The most recent figures from SMMT show that the electric models are now making up over 10% of new car registrations – an increase of 184% from 2019’s stats. This will continue to rise as consumers worry about the future of petrol and diesel vehicles and begin to realise the benefits of greener modes of transport. The popularity of electric vehicles is set to continue to grow through 2021 with many of the mainstream car manufacturers now offering electric options. This includes the Peugeot e-208, the Jaguar I-Pace, the Renault Zoe and the Audi e-tron.
The decline of petrol and diesel
With the uprise of electric vehicles comes the demise of petrol and diesel motors. September 2020 saw diesel vehicle registrations shrink by 38% whilst petrol vehicle registrations reduced by 21%. Many UK motorists are understandably reluctant to buy new petrol or diesel cars with the news that they will soon disappear from our roads. Although we will still be seeing petrol and diesel cars for many years to come, their popularity is no doubt shrinking rapidly and this trend will become even more apparent in 2021.
To sum up
Next year, you can look forward to seeing an increase in electric and hybrid vehicles whilst the number of petrol and diesel cars continues to decline. Brexit is likely to shake up the car market, increasing prices and shifting sales to non-EU manufacturers. If you’re looking to trade in your car for a new model in 2021, why not contact Any Colour Car today to find out how much we could offer you to buy your car. Trust us – you’ll be surprised!