UK sales have worst May since 1952

LONDON -- UK registrations fell 89 percent in May, only slightly less negative than a 97 percent collapse in April, as car dealerships were hit by the government's coronavirus lockdown, industry data showed.

The number of new cars sold last month at 20,247 was 163,477 fewer than in May 2019, the SMMT industry association said in a news release on Thursday.

The figure was the weakest May for sales since 1952, the SMMT said.

The cars registered in May were sold though "click and collect" services that the government agreed to in the middle of the month.

The Tesla Model 3 was the UK's best-selling car for the second month in May, with 852 units sold, followed by the Vauxhall Corsa (790) and Ford Fiesta (760).

Dealerships in the UK were allowed to reopen for car sales on June 1 as the British government relaxed measures imposed to slow the spread of COVID-19.

"After a second month of shutdown and the inevitable yet devastating impact on the market, the re-opening of dealerships is a pivotal moment for the entire industry and the thousands of people whose jobs depend on it," SMMT CEO Mike Hawes said in the release.

"Early reports suggest there is good business given the circumstances, although it is far too early to tell how demand will pan out over the coming weeks and months," Hawes said.

James Fairclough, head of AA Cars, said: "There are encouraging signs for the industry that latent demand has been building during the lockdown period and boosted by people who usually commute by public transport, now considering the purchase of a car."

The SMMT has estimated that dealership closures cost the U.K. Treasury 61 million pounds ($77 million) a day in lost taxes and state-wage support, while the lost output is expected to cost the sector as much as 12.5 billion pounds.

Elsewhere in Europe in countries where showrooms have been reopened for several weeks, the industry showed tentative signs of a recovery last month with sales in France and Germany falling 50 percent, an improvement over April plunges, while Spain also showed a slight recovery.

Reuters and Bloomberg contributed to this report