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
As the latest research results from the trade association show that electrification could create 40,000 new jobs by 2030, plug-in vehicles were able to further increase their market share.
Taken together, battery electric (BEVs) and plug-in hybrid vehicles (PHEVs) put 17.2 percent of new vehicles on the road (31,981 cars in total).
BEV accounted for more than one in ten registrations (10.7 percent) – more than diesel cars.
However, the acceptance of PHEVs grew faster than BEVs for the third month in a row after the plug-in-vehicle grant (PiVG) was reduced in April, which made the purchase of purely electric models more expensive.
The continued rise in demand for electric vehicles is due to Nissan’s announcement last week that it is building a battery gigafactory in the northeast.
It will supply batteries to its Sunderland car plant, where a new plug-in crossover will be produced.
SMMT numbers show that of the 19,842 BEVs sold in June, nearly three in ten (28 percent) were Tesla’s Model 3s.
Roughly 5,468 of the family electric sedan – which costs between £ 40,990 and £ 59,990 in the UK and is not eligible for the government’s £ 2,500 PiVG – were purchased last month, making it the most popular new car in the country, with more sales VW Golf, Ford Fiesta and the bestseller for the first half of 2021, the Opel Corsa.
It is the fourth month since the pandemic that Tesla’s cheapest car tops the UK sales charts – although it is the first time in a month that dealers’ showrooms have been open.
And although it topped the car charts, Vauxhall’s supermini is not the best-selling engine in the UK for the first six months of 2021.
With 26,978 registrations in the first half of the year, the Ford Transit Custom has surpassed the Corsas by 24,399 registrations to date.
The Tesla Model 3 was the best-selling new car in June 2021, although it did not make it into the top 10 most popular cars in the first half of the year
The Model 3 has been the UK’s monthly best-selling car for four months since the pandemic broke out – although June is the first month it has topped the charts in a month when car dealerships are and are not open to the public be forced to be closed during a lockdown
Regarding the upward trend in electric car sales, Mr. Hawes said that given increased economic confidence, consumers will need “future proof” when it comes to electric vehicle ownership, resulting in “long-term government commitments to incentivize and trust expanding charging infrastructure nationwide “.
He added: ‘Rebuilding for the next decade is now well underway as investments in local battery production begin and a range of new electrified models are offered in showrooms.
“As the end of domestic restrictions becomes more likely later this month, business and consumer optimism should continue to improve, leading to higher spending, especially as the industry looks to September and orders move forward for the next plate change.”
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