Global shortages impacting UK production
UK new car registrations fell by 15.8% to 119,167 units in April, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).
Despite showrooms being open for the entire month, unlike the previous year which saw lockdown restrictions in place until 12 April, global supply chain shortages, of which semiconductors are the most notable, have continued to constrain the delivery of new vehicles.
April’s decline was driven primarily by a 33.3% decrease in large fleet registrations, with manufacturers continuing to prioritise private consumers given robust demand, which helped this market segment see a modest increase of 4.8%.
Meanwhile, battery electric vehicles (BEVs) registrations continued to grow with 12,899 of the latest zero emission cars joining UK roads – an increase of 40.9% on the same month last year – and taking a 10.8% market share.
Given the ongoing impact of supply chain constraints and broader macro-economic factors, SMMT has revised its market outlook for 2022, with 1.72 million new cars now expected to be registered during the year, down from the 1.89 million outlook in January.
Mike Hawes, SMMT chief executive, said: “The worldwide semiconductor shortage continues to drag down the market, with global geopolitical issues threatening to undermine both supply and demand in the coming months. Manufacturers are doing everything they can to deliver the latest low and zero emission vehicles, and those considering purchase should look to place their orders now to benefit from incentives, low interest rates and reduced running costs.
“Accelerating the transformation of the new car market and the carbon savings demanded of road transport in such difficult times requires not just the resolution of supply issues, however, but a broader package of measures that encourages customer demand and addresses obstacles, the biggest of which remains charging anxiety.”
