SMMT reports second-worst car sales in 30 years
The Society of Motor Manufacturers and Traders says supply chain issues still depressing new car sales
The supply issues in the automotive sector continue, and, worse still, they don’t look like being addressed any time soon. That’s according to the Society of Motor Manufacturers and Traders (SMMT), which has just reported a dire set of sales numbers for June and the year-to-date. New car registrations fell 24.3 per cent in June, with 140,958 new vehicles registered – the worst performance for the month since 1996. So far this year, 802,079 new cars have been registered, which is an 11.9 per cent drop compared with last year, representing the second weakest half-year performance in 30 years.
You probably know the form by now: diesels were the worst hit (46.7 per cent down in June), followed by petrol sales (down 28.2 per cent), and even PHEVs took a hit last month (36.5 per cent under) results. BEVs are again the only winners, posting an uplift of 14.6 per cent for the month and 56 per cent on the YTD.
In terms of consumer sectors, large fleets saw the biggest dent, with a 27.6 per cent fall in registrations. Private purchases weren’t quite so depressed, with a more modest 21.7 per cent drop. This is because manufacturers are prioritising private buyers, and it leaves the fleet versus private split at around 50:50.
Some things never change, though. The Vauxhall Corsa was still the best-selling model in June (and for the year so far), followed by the Tesla Model Y, Mini, Nissan Qashqai and Volkswagen Golf rounding out the top five. The Ford Fiesta is notable by it's absence, but it's not all bad for Ford: the Puma is number two on the sales sheet for the YTD.
The wider slowdown was predicted, but is even greater than expected. Supply chain shortages are still the main issue, hampering production of all models, but scrapping the plug-in car grant hasn’t helped – it leaves the UK as the only major European market without incentives for private EV buyers.
The SMMT’s Chief Executive, Mike Hawes, 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.”
Does your car work OK? Then hang on to it. Used prices will fall dramatically as supplies of chips etc improve. But I fail to see what the real problem is here. It's not like there is a shortage of cars to go round. Or am I missing somehting?
Does your car work OK? Then hang on to it. Used prices will fall dramatically as supplies of chips etc improve. But I fail to see what the real problem is here. It's not like there is a shortage of cars to go round. Or am I missing somehting?
Also we need all those new cars to reduce carbon emissions..
I wanted a car but I'm sitting tight.
Market forces will deliver in time.
People are not buying now what do you think will happen come winter when the energy price cap jumps?
Not really, it’s a joke.
I wanted a car but I'm sitting tight.
Market forces will deliver in time.
People are not buying now what do you think will happen come winter when the energy price cap jumps?
I’d rather sit tight and stick with what I have. They can f
k right off.Does your car work OK? Then hang on to it. Used prices will fall dramatically as supplies of chips etc improve. But I fail to see what the real problem is here. It's not like there is a shortage of cars to go round. Or am I missing somehting?
The 3year lease and replace model (more frequent than purchase outright and replace but not exclusive) is dreadful consumerism at its worst.
When we all look at carbon and worry about motor cars inputs into the carbon matter by far the worst aspect is manufacturing new vehicles.
Manufacturing new vehicles with no real need to do so is terrible.
Also I'd like to see some caveats to the obligatory High fuel prices =EV is better.
High fuel prices are going to massively hit the cost of charging an electric car. For the majority of this country and the planet fossil fuels create the electricity that charges the cars. With that raw fuel cost rising and the competition in winter coming up the cost of filling an EV is going to rise dramatically.
If one is going to comment that fuel prices = BEV there should really be a regard to what else is going on.
Current fleet
1x 17 years
1x 54 years
Edited for spelling
Both the Fiesta and Focus have been de-prioritised as they make very little profit. All the chips that would be used to build those cars are being prioritised for the Puma and Kuga instead as there is a greater profit margin on both.
I'm very glad that I bought a second hand car back in March 2020, before all of the prices went nuts. The same family car is now worth £7k more than I bought it for!
The 3year lease and replace model (more frequent than purchase outright and replace but not exclusive) is dreadful consumerism at its worst.
When we all look at carbon and worry about motor cars inputs into the carbon matter by far the worst aspect is manufacturing new vehicles.
Manufacturing new vehicles with no real need to do so is terrible.
Also I'd like to see some caveats to the obligatory High fuel prices =EV is better.
High fuel prices are going to massively hit the cost of charging an electric car. For the majority of this country and the planet fossil fuels create the electricity that charges the cars. With that raw fuel cost rising and the competition in winter coming up the cost of filling an EV is going to rise dramatically.
If one is going to comment that fuel prices = BEV there should really be a regard to what else is going on.
Current fleet
1x 17 years
1x 54 years
Edited for spelling
You have government telling us to go EV but they want the revenue from the manufacturers it’s all just a game called capitalism round and round we go.
15
21
32
long term waiting isn't an issue for the right one....god help the motor industry if they depended on the like of me!
18
26
34
Fortunately my wife's company car scheme will keep the Koreans afloat (Kia EV6 to be ordered) and i suspect any manufacturers who can supply a half-decent EV will be ok as they're so heavily incentivised by the BIK.
I may be wrong but i think things like the Maserati Grockle are doomed as they dont fit into corporate procurement, either as company cars or as hire/rentals from the likes of Hertz etc
If you want an EV you may want tech, infrastructure to come on a bit first…… and for something interesting (Taycan aside but not many can afford that) to be released.
Plus mental price anchoring doesn’t help….. if you did have a golf R for £300 a month….. rather wrenching that the new one or indeed anything is double!
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