Covid - Current landscape release 18

landscape car

The aim of this report is to outline the current landscape for businesses operating in automotive retail, highlighting the economic impact and operational challenges that the Covid-19 pandemic has created. Release 18 incorporates the most recent ONS BIC data issued on the 11th February.

  • 30% of automotive businesses have temporarily closed or paused trading.
  • Unfortunately, it is being reported that 2.3% of businesses have permanently ceased trading, which is approximately 2,200 establishments.
  • 52% of automotive businesses trading are reporting a decrease in turnover. 12% of which are reporting that turnover has decreased by more than 50%.
  • There are some concerning warning signs as 4% of automotive businesses stated that they are at severe risk of insolvency and 19% are at a moderate risk. Both increases since last reporting. Also, 18% stated that they had low or no confidence that their business will survive the next 3 months which is an increase of 4% since last reporting, potentially putting 16,000 businesses at risk.
  • Since the beginning of November, the proportions of those on furlough has been increasing in line with the tightening of restrictions across the UK. The numbers on furlough are at similar levels to July 2020, but are significantly lower than at the peak of lockdown 1.0.
Release 18