Deloitte comments on SMMT new car registration figures has been saved
Deloitte comments on SMMT new car registration figures
05 July 2022
Jamie Hamilton, automotive partner and head of electric vehicles at Deloitte, said:
“New car registrations in June fell by 24% compared to the same period last year, which were themselves down by -16% on the 10-year June average. A year-on-year decrease in both private (22%) and fleet (28%) sales also means that, at the halfway point in the year, sales are down by 12% compared to mid-year 2021. These figures represent the worst June sales since 1996 and the worst first half of the year since 1992.
“The main reason for a lacklustre June is the ongoing semi-conductor shortage, exacerbated by continued disruption globally to production. Built up demand means many dealers have their order books full for the rest of the year. However, with consumer confidence at an all-time low, real wages in decline, and record prices at the pumps, the economic headwinds are gathering. As a result, there will be some nervousness around the market in 2023.
Almost one in six cars sold is fully electric
“However, the continued growth of electric vehicles (EVs) offer a more optimistic outlook. Stung by record fuel prices, many consumers are thinking more seriously about moving to electric and the benefits of doing so. Battery electric vehicles managed to achieve 15% growth in June, meaning that almost one in six new cars sold in the UK last month were fully electric. This is despite continued supply constraints, applying the brakes on even stronger growth in June. With consumers no longer able to benefit from initial purchase subsidies, it is too soon to say how this might reflect on sales longer-term.
“As the market for electric vehicles continue to grow, attention must turn to the continued rollout of charging infrastructure, as well as the longer term view on production infrastructure in the UK. This will involve further investment in gigafactories and the associated supply chain to ensure the UK can remain competitive on the global stage.”
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