New car sales suffer worst June since 1996
Tue, 05 Jul 2022
- Worst June for new car sales since 1996.
- Component supply issues, exacerbated by restrictions in China, continue to affect new car supply.
- Battery electric vehicle sales up 14.6 per cent.
UK new car registrations suffered their worst June since 1996 with a 24.3 per cent drop, according to the latest figures released by the Society of Motor Manufacturers and Traders (SMMT).
In total, 140,958 new vehicles were registered in June, with fleet sales experiencing a bigger drop than retail (27.6 per cent versus 21.7 per cent).
The SMMT said that the ongoing shortages of essential components (in particular, semiconductor chips), exacerbated by pandemic restrictions in China has meant global vehicle production has struggled to keep up with demand throughout 2022.
New car registrations for the year to date have fallen by 11.9 per cent to 802,079 units – the weakest first half year performance since 1992, bar 2020. Some 107,894 fewer new cars have been registered during the first half of 2022 compared with the same period last year – despite 2021 demand being restricted by dealership lockdowns until April, with consumers only able to buy vehicles through click and collect.
EV sales grow despite axing of plug-in car grant
Battery electric vehicles (BEVs) grew by 14.6 per cent in June, taking their market share to 16.1 per cent (up from 10.7 per cent a year before). This growth was despite the Government scrapping the plug-in car grant midway through the month.
Chris Evans, head of sales at online car marketplace heycar, is not convinced by the "negativity" surrounding the move.
"heycar saw a 33 per cent spike in interest for EVs over the week of the announcement compared to the week before, which suggests the electric car market is very strong," he said.
"When the grant was first introduced in 2011, it was a much-needed incentive in an EV market mostly consisting of smaller vehicles with minimal range and an almost non-existent charging network.
"Today, EVs are a truly viable option for the day-to-day driver, as opposed to a considered purchase for the few. For example, there are around 477,000 EVs on the road and over 32,000 public charging devices. There is also a comprehensive range of new and used electric vehicles to choose from, which means EVs are now a familiar part of the family car market."
Mike Hawes, SMMT chief executive, added that with rising fuel prices the switch to an electric car "makes ever more sense".
"The industry is working hard to improve supply and prioritise deliveries of these new technologies given the savings they can afford drivers,” he said.
How many new cars were sold in May 2022?
There were 140,958 total new car sales in the UK in May 2022, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).
This was a 24.3 per cent drop, making it the weakest June since 1996.
The SMMT said that ongoing component supply issues contributed to the decline.
How many electric vehicles were sold in May 2022?
There were 22,737 sales of battery electric vehicles (BEVs) in May 2022, a 14.6 per cent year-on-year increase, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).
BEVs now have a 16.1 per cent market share, up from 10.7 per cent in 2021.
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