UK new car registrations fell by -9.0% to reach 112,162 units in
July, according to the latest figures from the Society of Motor
Manufacturers and Traders (SMMT).1 The result
marks the fifth month of consecutive decline, although the fall
is the smallest recorded this year.2
Ongoing global supply chain issues, predominantly the lack of
semiconductors, continued to frustrate order fulfilment,
exacerbated by Covid lockdowns in key manufacturing and logistics
centres in China, plus disruption from the war in Ukraine, all of
which restricted production output and thus supply into the UK
new car market.
Declines were driven primarily by a -18.2% fall in registrations
by large fleets, to 50,014 units, while consumer registrations
remained steady at 59,847 units. As a result, private
registrations in the year to date are now 3.7% up on 2021 as
manufacturers prioritise private customers.
Battery electric vehicle (BEV) uptake grew 9.9% to 12,243 units
to achieve a 10.9% market share for the month. Although this is
the weakest monthly uplift recorded by BEVs since the pandemic,
overall growth in the year has reached 49.9% to deliver a 13.9%
market share, illustrating the volatility in the supply chain.
July was a weaker month for hybrid electric vehicle (HEV) uptake,
with registrations falling -6.7% to take 12.2% of the market.
Plug-in hybrids (PHEVs) fell -34.0% which cut their market share
to 5.8%.
The first half of the year has proved more challenging than
anticipated, due to the enduring severity and impact of the
semiconductor shortage and global conflict. While the sector
expects the second half to improve as supply issues start to
recede, it is unlikely that the market will be able to recover
the significant losses sustained so far. The outlook for the full
year has therefore been revised downwards to 1.6 million new car
registrations – a -2.8% fall on 2021, with the industry facing
its most challenging year for three decades. Around two million
registrations have been lost since Covid, effectively
representing a loss of a year’s registrations. Plug-in market
share will continue to grow, however, to reach 22.6% as
manufacturers prioritise investment in zero emission vehicle
production.
Likewise, although the 2023 outlook has also been revised
downwards since the April estimate, it is likely to be an
improvement on 2022, with overall registrations anticipated to
reach to 1.89 million (rather than 2.02mn), with plug-ins
comprising 27.8% of the market.
Mike Hawes, SMMT Chief Executive, said,
“The automotive sector has had another tough month and is drawing
on its fundamental resilience during a third consecutive
challenging year as the squeeze on supply
bedevils deliveries. While order books are strong, we
need a healthy market to ensure the sector delivers the carbon
savings government ambitions demand. The next Prime Minister must
create the conditions for economic growth, restore consumer
confidence and support the transition to zero emission mobility.”
Notes to editors
1 July’s figures reflect a short interruption to registrations
processing at one manufacturer due to a planned systems upgrade
affecting a limited number of vehicles. This does not materially
affect the overall market performance.
2 June -24.3%; May -20.6%; April -15.8%; March -14.3%
