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New car sales rose 28 percent annually in June, although registrations are still well below pre-pandemic levels as the industry continues to struggle to get the latest models to customers.
Last month, 186,128 cars were registered, an “artificial” increase over the previous year when the showrooms emerged from the forced closings during the first lockdown in 2020.
If you compare the registration numbers with the 10-year average before the coronavirus, sales in June were 16.4 percent and well 26.8 percent below the half-year average, according to the Society of Motor Manufacturers and Traders.
This is largely due to the widespread shortage of semiconductor computer chips needed for the latest vehicles, which “squeeze” the arrival of new models – although Tesla shipped nearly 5,500 Model 3 electric vehicles last month, which is more than any other Car is.
The battery-powered sedan is not the UK’s best-selling engine in the first half of 2021, but a Ford Transit Van.
Tight car sales in the UK: New engine registrations are being constrained by the shortage of the latest models due to the global shortage of semiconductor computer chips, the SMMT said this morning. However, Tesla had no problem shipping Model 3 to buyers and topped the sales charts in June
The ongoing shortage of chips has forced a number of manufacturers – including Jaguar Land Rover and Mini in the UK – to stop producing new models that require them.
Some cars, like Land Rover’s latest Defender 4X4, have reportedly now been subject to long customer waiting lists of up to a year.
Drivers who want to change their car or buy their first model are therefore – instead of waiting months for a new engine – to turn to the used market, which has seen used car values rise to record levels in recent months.
The chip issue is now the biggest factor crippling the sector’s recovery from Covid, with total sales down 9,000 from the industry estimate from April to June.
New car sales rose 28% year over year in June, although registrations are still well below pre-pandemic levels as the industry continues to struggle to ship the latest models to customers
The chip issue is now the biggest factor crippling the sector’s recovery from Covid, with total sales down 9,000 from April to June from industry estimates
Mike Hawes, Chairman of the Board of Directors of the Society of Motor Manufacturers and Traders, said: “With the UK’s final stages of vaccine rollout well advanced and confidence growing, the automotive sector is now battling a ‘long covid’ of vehicle supply challenges.
“The semiconductor shortage resulting from the limited production of Covid worldwide is affecting vehicle production, disrupting supply on certain models and limiting the recovery of the automotive industry.”
Jamie Hamilton, automotive director and head of electric vehicles at Deloitte, said semiconductor poverty is likely to continue into next year.
“Dealers have less inventory and many even struggle to source display models for consumers to test,” he said.
“Unfortunately, there is little breathing space for the industry as semiconductor shortages are expected to continue to cause problems for the remainder of the year and perhaps even into 2022.”
While the low availability of chips limits market performance, the SMMT said electrified car sales growth should be seen positively in June.
BEV and PHEV currently account for 17.2% of all newly purchased cars, although sales of all-electric models were impacted by the April cut-off to the plug-in vehicle allowance
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