Deloitte comments on SMMT new car registration figures

Jamie Hamilton, automotive director and head of electric vehicles at Deloitte, said:

“New car sales in July have stayed below pre-pandemic levels for another disappointing month in a row, falling -29.5% year-on-year. Whilst consumer demand remains high, the industry continues to face significant supply chain headwinds, along with staff shortages, stuttering overall production.

“With one in ten consumers looking to buy a car in the next three months, increasing supply in the market is likely to determine the speed of recovery.

“Such is the scarcity of new stock, combined with an ongoing global shortage of semiconductors, manufacturers are having to adapt what they deliver to clients; with some offering to retrofit chips when supply allows, in return for discounted or complimentary repair or annual services.

“As supply across the market remains short, the used car market continues to defy the norm with resell values remaining strong. For those consumer households looking to sell, perhaps due to multiple vehicle ownership, now is likely to achieve a very competitive price.

“The market share of battery electric (9%) and plug-in-hybrid (8%) vehicles grew their combined market share to 17% in July, gaining a further lead on pure diesel (7.1%). For this growth to continue, consumers will be looking for tangible improvements to the UK’s charging infrastructure in the run up to 2030. For now, there are still a number of incentives, including significant tax savings, that consumers can take advantage of when switching to electric. Raising awareness of these benefits and making them easy for consumers to navigate is key for further EV uptake.”

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Notes to the editor

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