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Supply challenges still hampering new car market recovery, SMMT data shows

Date: 04 March 2022   |   Author: Sean Keywood

UK new car sales were up by 15% year-on-year in February, but still down by 25.9% compared with pre-pandemic figures from two years ago, according to the Society of Motor Manufacturers and Traders (SMMT).

The organisation said that the annual improvement in sales had to be considered in the context of Covid-19 lockdown measures having shut showrooms in February 2021.

The data also showed that private car registrations were up by 30% year-on-year last month, while fleet registrations were up by just 2%, which the SMMT said showed that in a market where supply remains constrained by the global semiconductor crisis, manufacturers were prioritising private buyers.

Fleets still took a 50.7% market share last month, compared with 47.1% for private buyers. Business registrations, classed as to fleets with fewer than 25 vehicles, were up by 110.7%, but still only took a 2.2% overall share.

In the overall market, it was another month of big gains for EV sales, up by 196.3% year-on-year for a 17.7% market share. Plug-in hybrids also saw growth, up by 48.9% for a 7.9% market share, while conventional hybrids were up by 115.4% for an 11.4% share.

Mild hybrid petrol car registrations were up by 40% to take 12.3% of the market, but mild hybrid diesels were down by 31.8%, taking just 3.2% of the market.

Petrol car registrations were down by 10.5%, though these still took a 40.6% market share, while diesel registrations fell by 42%, making up just 6.6% of the market.

SMMT chief executive Mike Hawes said: "Despite February's traditional low registration numbers, consumers are switching to EVs in ever-increasing numbers. More than ever, infrastructure investment needs to accelerate to match this growth. 

"The UK Government must use its upcoming Spring Statement to enable this transition, continuing support for home and workplace charging, boosting public charge point rollout to tackle charging anxiety and, given the massive increase in energy prices, reducing VAT on public charging points. 

"This will energise both consumer and business confidence and accelerate our switch to zero-emission mobility."

 

 



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