Car industry suffers second worst May in three decades

The UK’s automotive marketplace experienced its 2nd weakest Could in 3 decades, figures present.

Just 124,394 new cars were being registered very last thirty day period, the Society of Motor Companies and Traders (SMMT) stated.

That was down 20.6% when compared with the identical month previous 12 months.

It was the second most affordable amount of new cars registered in May well because 1992.

Only May 2020 – when the United kingdom was in a coronavirus lockdown – was even worse for the sector.

The SMMT attributed the decrease to shortages of parts which are decreasing vehicle availability “despite demand”.

Registrations of pure electrical cars bucked the total development past month, with a 17.7% year-on-calendar year enhance.

Electrified vehicles these types of as pure electrics, plug-in hybrids and hybrids accounted for three out of 10 new cars in Might.

SMMT main govt Mike Hawes explained: “In nonetheless one more hard month for the new car market, the industry proceeds to fight ongoing world wide areas shortages, with expanding battery electric powered automobile uptake 1 of the number of shiny spots.

“To proceed this momentum and travel a robust mass marketplace for these vehicles, we need to ensure every purchaser has the self-assurance to go electric.

“This calls for an acceleration in the rollout of accessible charging infrastructure to match the increasing selection of plug-in vehicles, as nicely as incentives for the buy of new, cleaner and greener cars.

“Delivering on internet zero signifies renewing the vehicles on our streets at tempo, but with increasing inflation and a squeeze on household incomes this will be increasingly hard, until firms and non-public purchasers have the self-confidence and encouragement to do so.”

Ian Plummer, business director at automotive classified promotion enterprise Auto Trader, mentioned: “Today’s weak new car figures underline the lingering worries for carmakers, as the war in Ukraine adds to the headwinds of a article-Covid lack of semiconductors, and lockdowns in China.

“Even however the microchip shortage is easing a minor, suppliers are battling to resource crucial elements like wiring looms, which are a significant Ukrainian export and tricky to replace.

“While there are some indicators of dented purchaser self-confidence now dampening car-acquiring need from its latest highs, the most important problem in the new car market place lies with offer instead than demand with most brand names and dealerships boasting bulging orderbooks and potential buyers commonly ready lots of months for deliveries.”

Alex Buttle, co-founder of applied car market Motorway.co.british isles, stated electric car or truck gross sales “provide a beacon of hope to the car current market that items aren’t all doom and gloom”.