Engineering news
Released today (5 July) by the Society of Motor Manufacturers and Traders (SMMT), figures show that 140,958 new vehicles were registered in the UK, the weakest June performance since 1996.
“Global vehicle production has struggled to keep up with demand throughout 2022,” an SMMT announcement said. New car registrations for the year so far have fallen by 11.9% to 802,079 units, the second weakest first half performance since 1992.
Compared to the same period last year, 107,894 fewer new cars were registered during the first half of 2022 – despite 2021 demand being restricted by dealership lockdowns until April, with consumers only able to buy vehicles online. Declines were most significant in large fleets, which recorded a 27.6% fall in registrations, while private consumer volumes dropped by 21.7%.
Sales of battery electric vehicles (BEVs) continued to grow however, with a 14.6% increase. Their market share grew to 16.1%, up from 10.7% a year before. Plug-in hybrid electric vehicle (PHEV) uptake fell by 4,425 units to a 5.5% market share.
In total, plug-in vehicles comprised more than a fifth (21.6%) of new cars joining the road. The pace of that growth is decelerating, with registrations up by 26.0% in the first half of 2022, compared with 161.3% during the first half of 2021.
“The slowdown is more than had been anticipated, leaving the market behind the industry’s outlook,” the announcement said. “Part of this fall is attributable to the continuing supply chain shortages that are hampering production of all models, but the scrappage of the plug-in car grant means the UK is now the only major European market without purchase incentives for private EV buyers.”
Mike Hawes, SMMT chief executive, said: “The semiconductor shortage is stifling the new car market even more than last year’s lockdown. Electric vehicle demand continues to be the one bright spot, as more electric cars than ever take to the road, but while this growth is welcome it is not yet enough to offset weak overall volumes, which has huge implications for fleet renewal and our ability to meet overall carbon reduction targets.
“With motorists facing rising fuel costs, however, the switch to an electric car makes ever more sense and the industry is working hard to improve supply and prioritise deliveries of these new technologies given the savings they can afford drivers.”
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