- June new car registrations fall -24.3% to 140,958 units –
weakest performance for the month since 1996.
- Ongoing challenges in component supply, exacerbated by
restrictions in China, hamper industry’s ability to fulfil
demand.
- Year to date registrations reach 802,079 units – a fall of
-11.9% on last year, and second weakest first half for 30 years.
UK new car registrations fell -24.3% in June, according to the
latest figures released today by the Society of Motor
Manufacturers and Traders (SMMT). The month saw 140,958 new
vehicles registered, the weakest June performance since 1996.
Battery electric vehicles (BEVs) continued their growth streak,
however, with a 14.6% increase in volume, as market share
continued to grow, reaching 16.1%, up from 10.7% a year before.
Conversely, plug-in hybrid electric vehicle (PHEV) uptake fell by
4,425 units to take a 5.5% market share. In total, plug-in
vehicles comprised more than a fifth (21.6%) of new cars joining
the road in the month. All other powertrains saw declines in
registration volumes and market share apart from hybrid electric
vehicles (HEVs), which, despite a 1,172 unit fall, increased
their market share to 10.6%.
Declines were most significant in large fleets, which recorded a
-27.6% fall in registrations, while private consumer volumes
dropped by a more modest -21.7%. As a result, the fleet and
business share of the market reduced to 50.7% as manufacturers
prioritised private consumers in the supply-constrained
environment.
Given the ongoing shortages of essential components, exacerbated
by pandemic restrictions in China, global vehicle production has
struggled to keep up with demand throughout 2022. New car
registrations for the year to date have fallen by -11.9% to
802,079 units – the weakest first half year performance since
1992, bar 2020.1 Some 107,894 fewer new cars have been
registered during the first half of 2022 compared with the same
period last year – despite 2021 demand being restricted by
dealership lockdowns until April, with consumers only able to buy
vehicles through click and collect.
More positively, electric vehicle market share continues to grow.
Plug-ins account for a record one in five new car registrations
year to date, demonstrating manufacturers’ commitments to deliver
the latest zero emission capable vehicles. The pace of this
growth, however, is decelerating, with registrations up by 26.0%
in the first half of 2022, compared with growth of 161.3% during
the first half of 2021.2
While growth rates were expected to moderate as the market begins
to establish, the slowdown is more than had been anticipated,
leaving the market behind the industry’s outlook.3
Part of this fall is attributable to the continuing supply chain
shortages that are hampering production of all models, but the
scrappage of the plug-in car grant means the UK is now the only
major European market without purchase incentives for private EV
buyers.
Mike Hawes, SMMT Chief Executive, said, “The
semiconductor shortage is stifling the new car market even more
than last year’s lockdown. Electric vehicle demand continues to
be the one bright spot, as more electric cars than ever take to
the road, but while this growth is welcome it is not yet enough
to offset weak overall volumes, which has huge implications for
fleet renewal and our ability to meet overall carbon reduction
targets. With motorists facing rising fuel costs, however, the
switch to an electric car makes ever more sense and the industry
is working hard to improve supply and prioritise deliveries of
these new technologies given the savings they can afford
drivers.”
Notes to editors
1 Jan-Jun 1992: 768,745; Jan-Jun 2020: 653,502.
2 Jan-Jun 2021 BEV+PHEV registrations:
132,100; Jan-Jun 2020: 50,564.
3 SMMT Outlook published May 2022; next revision to be
published in August 2022.
