UK car sales grow but industry warns troubles are not over
After four months of consecutive decline, new car registrations showed signs of recovery, going up 1.7 per cent in November compared with the same time last year.
According to data from the Society of Motor Manufacturers and Traders (SMMT), 115,706 cars were registered last month, with electric vehicles becoming the main drivers beyond the demand.
“Electric vehicles have proven again to be a bright spot,” said Auto Trader’s commercial director Ian Plummer. “Fuel anxiety, greater environmental awareness, and the ‘cool factor’ are all helping to drive sales, albeit on a relative scale.”
Compared with November 2020, battery electric vehicles grew to take a 18.8 per cent piece of the market’s pie, while plug-in vehicles went up to 10,796 units.
Despite the 1.7 per cent uptake, the automotive market remains significantly down, with 31.3 per cent fewer registrations on pre-pandemic times, mainly due to supply chain issues and semi conductor shortages on top of the pandemic.
“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,” Deloitte’s automotive director Jamie Hamilton said.
“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.”
The SMMT research has also revealed the booming demand in EV is not matched by the roll-out of public infrastructure, as Britain has one of the worst ratios of plug-in vehicles on the road to public chargers.
“The continued acceleration of electrified vehicle registrations is good for the industry, the consumer and the environment but, with the pace of public charging infrastructure struggling to keep up, we need swift action and binding public charger targets so that everyone can be part of the electric vehicle revolution, irrespective of where they live,” said SMMT’s chief executive Mike Hawes.
While the lack of charge is considered by prospective buyers as one of the main reasons for not switching to EV, data from breakdown provider LV = Britannia Rescue showed that EV breakdowns are three times more likely to be caused by wheel or tyre issues.
The research showed that only 11 per cent of motorists complained about battery issues, compared with 37 per cent calling the breakdown provider because of tyres issues.
“Generally electric cars perform very well and aren’t susceptible to suffering nearly as many issues as petrol or diesel models, but if you do have a problem it’s more likely to be wheel or tyre related, or dead on key,” said Henry Topham, LV = Britannia’s managing director.
“And as we get into the cold, dark winter months it’s good for drivers to be aware of these potential issues and make sure their car is regularly being checked and looked after.”