Press releases

Deloitte comments on SMMT new car registration figures

5 July 2021

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

“New car sales this month clocked in at a disappointing 16.6% below pre-pandemic comparables in June 2019, and are also down 16.4% on the ten-year average.

“That said, almost all conditions are right for a super-charged recovery in the car industry. Consumer and business confidence is up, and limited spending opportunities over the last year have left many consumers with record savings. However, while demand is clearly on the up, the industry is facing major supply issues that have temporarily applied the brakes to recovery.hought."

Semi-conductor shortages continue to squeeze stock

“The ongoing global semi-conductor shortage has had a direct impact on consumers with manufacturers unable to fulfil orders in a timely manner, especially on the less popular models they have had to deprioritise. In turn, dealerships have less stock and many are even struggling to source display models for consumers to test-drive.

“The ripple effect of this shortage has seen unusual activity in the used car market. Demand is high, but the limited availability of new cars means that there are even fewer used cars coming onto the market. As a result, prices have shot up. In an attempt to secure stock, some dealers have looked beyond the auction houses, turning their attentions to private sellers.

“Unfortunately, there is little respite for the industry, with the semi-conductor shortage expected to continue causing issues throughout the rest of the year and maybe even into 2022."

Investment key to continued EV growth

“Whilst overall sales were down, electric vehicles continued to see significant growth in June. Battery electric and plug-in-hybrid achieved a combined 17.2% market share (10.7% and 6.5%, respectively), maintaining a comfortable lead on pure diesel yet again, which captured just 8.1% of the market. The growth of plug-in hybrid is likely a reflection of charging point accessibility for pure electric, which has yet to reach all consumers.

“Almost a quarter of cars produced in the UK are now electric in some form, demonstrating the demand for ultra-low and zero emission vehicles. As this figure rises, both the economic and environmental cost of buying and shipping batteries from other countries to the UK will come into sharp focus. Unless UK manufacturers can find a way of reducing the cost of installing batteries, they may struggle to compete with the global market.

“The most obvious way to reduce both costs and environmental impact is to produce batteries in the UK and recent commitments have been seen as a major boost by many in the sector.

“More investment will be required over the next decade in order to meet 2030 ambitions.”


Notes to the editor

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 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

Member of Deloitte Touche Tohmatsu Limited.

Did you find this useful?