The car industry has revealed a 22% slump in new car sales during August as the sector continues to battle coronavirus crisis-related supply shortages.
The Society of Motor Manufacturers and Traders (SMMT) said just 68,033 vehicles were registered last month – compared with more than 87,000 in August 2020 – as the economy emerged from COVID pandemic restrictions.
It represented the weakest August since 2013, the industry body said.
August is traditionally one of the quietest months of the year for new car sales ahead of the important plate-change this month that sees the ’71 number emerge on the roads for the first time.
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The industry said sales were 20% up in the year to date when compared with the same period in 2020 – an encouraging figure despite production being hampered by the global shortage of semiconductors and the so-called “pingdemic” this year.
One bright spot last month was demand for greener cars as sales of hybrid and battery models continued to surge as the clock ticks down to the 2030 ban on the sale of new cars powered by conventional petrol and diesel engines.
Sales of the latest battery electric (BEV), hybrid (HEV) and plug-in hybrid (PHEV) vehicles, rose by 32.2%, 45.7% and 72.1% respectively, the SMMT said.
It revealed there were now 130 plug-in models on the market.
The industry body’s chief executive, Mike Hawes, said of the overall performance: “The global shortage of semiconductors has affected UK, and indeed global, car production volumes so new car registrations will inevitably be undermined.
“Government can help by continuing the supportive COVID measures in place currently, especially the furlough scheme which has proven invaluable to so many businesses.
Showrooms are struggling to secure new products as a result of the chip shortage. Pic: AP
“As we enter the important September plate-change month with an ever-increasing range of electrified models and attractive deals, buyers in the market for the new 71 plate can be reassured manufacturers are doing all they can to ensure prompt deliveries.”
Auto Trader’s commercial director, Ian Plummer, said the hit to production for the new car market was resulting in record visits to its website.
“Our research suggests the new car market’s loss will be the used car market’s gain, with three quarters of car buyers indicating they’d switch to a second-hand alternative if their brand-new choice wasn’t available,” he said.
“This could see an additional 200,000 to 300,000 would-be new car buyers entering an already record performing used car market.”