New car registrations in the UK have seen the weakest September since 1998, dropping by 34 percent year-on-year amid continuing chip shortages, the British Society of Motor Manufacturers and Traders (SMMT) said on Tuesday.
In September, 215,312 new cars were registered, showing a decline of 34 percent than the same month last year, when the coronavirus restrictions were significantly curtailing economic activity, said the SMMT.
“September is typically the second busiest month of the year for the industry, but with the ongoing shortage of semiconductors impacting vehicle availability, the 2021 performance was dropped some 44.7 percent on the pre-pandemic ten-year average,” said the report.
“This is a desperately disappointing September and further evidence of the ongoing impact of the COVID pandemic on the sector,” said Mike Hawes, CEO of the SMMT.
“Despite a strong demand for new vehicles over the summer, three successive months have been hit by stalled supply due to reduced semiconductor availability,” Hawes added.
However, the new battery electric vehicle (BEV) saw the best monthly performance ever in September, with 32,721 units registered, covering a market share of 15.2 percent and showing “the wide range of models now available and growing consumer appetite,” said the report.
Meanwhile, plug-in hybrid (PHEV) share also increased to 6.4 percent, meaning over one in five new cars registered in September was zero-emission capable according to the report.
“Despite these challenges, the rocketing uptake of plug-in vehicles, especially battery electric cars, demonstrates the increasing demand for these new technologies,” said Hawes.
To meet the decarbonization ambitions, Hawes said: “We need to ensure all drivers can make the switch — not just those with private driveways — needing a massive investment in public recharging infrastructure.”
“Chargepoint roll-out must keep pace with the acceleration in plug-in vehicle registrations,” Hawes added.
The chip shortage, which has hit automakers worldwide, emerges from a confluence of factors as automakers, which closed plants for two months during the coronavirus pandemic last year, rival against the sprawling consumer electronics industry for chip supplies. A factory fire suffered by Japanese chipmaker Renesas this year is also cited as a reason behind the chip shortage.
