UK new car sales fell 9% in July as supply chain problems continue
Sales of new cars in the UK fell by nearly a 10th in July because of supply chain problems, forcing the industry body to cut its full-year forecast even though it expects chip shortages to ease in the coming months.
New car registrations in July fell 9% from a year earlier to 112,162 vehicles, as shortages continued to hamper carmakers’ ability to fulfil orders, according to the Society of Motor Manufacturers and Traders (SMMT). Sales fell for the fifth month in a row, although the decrease was the smallest recorded this year.
Large corporate fleets registered a 18.2% decline, to 50,014 vehicles, while sales to consumers held steady at 59,847.
A global shortage of semiconductors, exacerbated by Covid lockdowns in important manufacturing and logistics centres in China, along with the disruption caused by Russia’s invasion of Ukraine, all restricted production of new cars.
The SMMT said the first half of 2022 had been tougher than anticipated, and cut its full-year forecast for new car sales to 1.6m, down from 1.72m. This is equivalent to a 2.8% drop in sales compared with 2021, and would make 2022 the most challenging year for the industry in three decades. There have been about 2m fewer car registrations since the pandemic began, the equivalent to a whole year of sales.
The SMMT has also lowered its sales forecast for next year to 1.89m, down from 2.02m. Demand for electric cars continues to grow, however, and plug-in cars are expected to reach a market share of 22.6% this year, rising to 27.8% next year.
The lobby group expects global chip shortages to start to ease over the coming months, although it will take a while before supply returns to normal. Shortages are still likely to be a problem next year, but to a lesser
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