New car registrations fell 14%, marking the weakest March since 1998, as semiconductor shortages continued to affect car supply, although demand for electric cars reached all-time highs.
Rising inflation in Britain, exacerbated by rising fuel prices, could also hurt demand for new cars, while the Russo-Ukrainian conflict could further reduce car supply chains, according to the union of manufacturers and car dealers.
“Given that about 20% of annual registrations are recorded in March, the result is particularly disappointing for the industry and underscores the long-term impact of the pandemic on the industry,” the union said.
The lack of processors due to supply problems during the pandemic and the growing demand for consumer electronics have severely affected the car industry, with the lack of critical components preventing the production of new cars.
However, electric vehicles had their best month, with the rankings in March exceeding those for the whole of 2019.
Source: Capital
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