Deloitte comments on SMMT new car registration figures has been saved
Deloitte comments on SMMT new car registration figures
04 November 2021
Jamie Hamilton, automotive director and head of electric vehicles at Deloitte, said:
“New car sales in October fell by -25% compared to the same period last year, driven by substantial losses in fleet sales, down -40% over the same period, as supply issues continued to disrupt availability.
“A shortage of semi-conductors continues to be a drag on the sector. Financial results from a number of major manufacturers have demonstrated just how significant the shortage has been to bottom lines.
“Private sales were down this month by -3%, but there are potential headwinds on the horizon as consumer confidence fell for the first time this year. This follows a strong rebound from the height of the pandemic, as consumers expressed concerns about their personal finances. Compared to Q2, fewer consumers now intend to buy a new car in the coming three months, suggesting that any pent-up demand built up over the last year may start to fall away.
“Despite current challenges for fleet this month, there may be better news ahead. With CFOs placing greater emphasis on increasing capital expenditure in the quarter ahead, and with more businesses looking to reduce emissions by transitioning fleets and company cars to electric, we should see fleets pursue replacement vehicles at scale sooner rather than later.
“With the eyes of the world on COP26 this month, we are reminded of the important role that EVs will play in achieving decarbonisation goals. The UK is well on its way to an all-electric future, and battery electric vehicles sales grew by 73% compared to last year, accounting for 15% of all new car sales this month. As a result, the SMMT expects more plug-in EVs to be sold in 2021 than in the whole of the previous decade combined.
“To keep up this momentum and achieve the goals set over the next decade, we will need to see a more equitable rollout of public charging points which would ensure EVs are also accessible to those households without off-street parking.”
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