Deloitte comments on SMMT new car registration figures

 Jamie Hamilton, automotive director and head of electric vehicles at Deloitte, said:
“New car sales in November grew by 2% compared to the same period last year, driven primarily by private sales (+42%). Whilst promising, this growth is from a low base and sales continue to be substantially below their pre-pandemic level (-31%).

“This month’s results mean that year-to-date sales are only 3% higher than last year; a time when COVID-19 restrictions closed showrooms restricted sales to online or virtual, only. At the start of 2021, there was hope that sales would return to near-previous levels but, with just a few weeks of the year left, it is evident how damaging the ongoing semi-conductor shortage continues to be.

“The shortage is expected to continue well into 2022. While manufacturers are doing all they can to satisfy strong demand, consumers are still faced with a longer-than-normal wait for a new car.

One in ten cars sold this year fully electric

“Electric vehicles continue to outperform the sector, with battery electric (+110%) and plug-in hybrid (+40%) vehicles both reporting growth. In comparison, both petrol and diesel declined compared to the same period last year by -10% and -63%, respectively. Fully electric vehicles alone held a 19% share of the market in November, and have accounted for a more than one in ten of all cars sold this year; almost double compared to the same period in 2020 (6%).

“With EV growth continuing apace, charging infrastructure has once again been in the spotlight over the past month. The rate at which new chargers are being installed is falling behind the number of new EVs that are sold, meaning the ratio of chargers to cars is far from optimal.

“The availability of chargers remains one of the biggest barriers to consumers switching to a fully electric vehicle. A comprehensive, joined up approach to investment in the EV charging landscape will be required to overcome this hurdle.

“This month we have also seen legal commitments to fitting a charge point to all new homes and buildings. Undoubtedly, this will encourage more businesses to commit switching their fleets to electric and will see many more homeowners with driveway access to charging. However, charging will still be a challenge for those without off-street parking. Creating an equitable approach to EV charging which does not exclude large pockets of the population will be key to meeting 2030 commitments.”

-Ends-

About Deloitte

In this press release references to “Deloitte” are references to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”) a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity.

Please see deloitte.com/about for a detailed description of the legal structure of DTTL and its member firms.

Deloitte LLP is a subsidiary of Deloitte NSE LLP, which is a member firm of DTTL, and is among the UK's leading professional services firms.

The information contained in this press release is correct at the time of going to press.

For more information, please visit www.deloitte.co.uk

Member of Deloitte Touche Tohmatsu Limited