According to industry figures released on Tuesday, British new car registrations declined 24 percent in June from a year earlier, marking the lowest month in 26 years, as the industry battled a protracted component supply deficit brought on by China’s COVID-19 restrictions.
The British car industry is already preparing for a crisis in the cost of living as consumers restrict their spending to basics and avoid big-ticket purchases. The sector is already suffering from a serious shortage of semiconductors.
According to official data from the Society of Motor Manufacturers and Traders (SMMT), the number of new cars registered in Britain decreased to 140,958 units.
The SMMT reduced its projection for new car registrations in 2022 from 1.89 million to 1.72 million in May.
Lockdowns in China made the shortage of crucial auto parts worse and made it more difficult for the industry to meet demand. One of the industries that supply-chain hiccups have affected the most globally is the automotive sector.
According to SMMT Chief Executive Officer Mike Hawes, “the semiconductor scarcity is constraining the new vehicle industry considerably more than the lockout from last year.”
Despite ongoing growth obstacles, China’s economy is currently exhibiting indications of a sluggish recovery from the supply shocks.
Battery electric vehicle (BEV) sales in the UK increased by 14.6 percent in volume, whereas sales of plug-in hybrid cars (PHEV) decreased by 4,425 units.
According to the SMMT, the plug-in slowdown was worse than expected, pushing the market behind the expectation for the sector.
The UK is currently the only major European market without purchase incentives for private EV purchasers, according to the industry association. “Part of this decline is attributed to the continued supply chain limitations that are limiting production of all models,” the organisation said.
According to the SMMT, a record one in five new car registrations this year have been plug-ins, proving the manufacturers’ dedication to providing the most recent zero-emission cars.
According to the SMMT, the number of new cars registered in the UK so far this year has decreased by around 12 percent to roughly 802,000 units, marking the second-weakest first half of a year since 1992.
