New car registrations up as lockdown end nears
The total number of cars registered grew in June from the same period last year, however new registrations still lag pre-pandemic figures, which raises questions about further growth in the industry.
A total 186,128 new cars were registered in June, according the Society of Motor Manufacturers and Traders (SMMT), up 28 per cent on the same month last year, when most dealerships reopened after the first lockdown.
Compared with the previous decade average, however, monthly registrations were down 16.4 per cent, while total registrations for Q2 2021 fell short of industry expectations by around 9,000 units.
The Tesla Model 3 proved to be June’s bestseller, with 5,468 units sold last month, followed by the Volkswagen Golf with 4,629 units sold.
The Vauxhall Corsa is the year’s best-selling car so far in the UK, with more than 24,000 units sold in 2021. The Ford Fiesta came in second, with 21,511 sold this year.
SMMT research reckons electrification could create 40,000 new jobs by 2o23, as plug-in vehicles continue to increase market share.
In June, battery electric and plug-in hybrid vehicles accounted for 17.2 per cent of new vehicles hitting the road, while battery electric vehicles account for more than one in 10 registrations.
Semiconductor shortage
SMMT chief executive Mike Hawes said: “With the final phases of the UK’s vaccine rollout well underway and confidence increasing, the automotive sector is now battling against a ‘long Covid’ of vehicle supply challenges.
“The semiconductor shortages arising from Covid-constrained output globally are affecting vehicle production, disrupting supply on certain models and restricting the automotive recovery.
“However, rebuilding for the next decade is now well underway with investment in local battery production beginning and a raft of new electrified models in showrooms.
Karen Johnson, head of retail and wholesale at Barclay’s Corporate Banking, said for some, the return to the office means a new set of wheels as sales jumped this month.
“The closure of non-essential retail during the pandemic created plenty of pent-up demand in the UK vehicle market, which has boosted sales in recent months. However, whilst the latest year-on-year growth figures remain positive, industry figures will be preparing themselves for the eventual end of this post-lockdown sales boost,” she continued.
“The SMMT predicted around two million vehicle sales in 2021, but as we reach the six-month point with just over 900,000 cars sold a key question being asked on the nation’s forecourts will be “what’s next for driving sector growth?”