untitled design

UK car sales fall to 30-year low

New car registrations in the UK fell to 1.6 million last year, the lowest level since 1992, as global chip shortages hit sales in the first six months.

Supply constraints have seen many manufacturers prioritize the delivery of battery electric vehicles, which have seen record sales and overtaken diesel cars for the first time in the UK market.

Tesla’s Model Y was the third best seller overall, behind the Nissan Qashqai and Vauxhall Corsa.

Vehicle registrations in 2022 were 2% below the previous year and about 700,000 units below pre-pandemic levels, said Thursday (5) the Society of Motor Manufacturers and Traders, which publishes the data.

Sales grew in the last five months of the year, allowing the country to regain its position as the second largest new car market in Europe by volume, behind only Germany.

That trend could continue this year, despite fears of a long recession, as long as more charging stations are built for electric vehicles.

“The automotive market continues to drift from its pre-pandemic performance, but may well weather broader economic trends, showing significant growth in 2023,” SMMT CEO Mike Hawes said in a statement.

“To ensure this zero-emissions growth, the government must help all drivers go electric and compel others to invest more quickly in national charging infrastructure,” added Hawes.

The UK is not alone in suffering from sluggish vehicle sales as shortages of parts, particularly computer chips, cripple production. New car sales in the United States are expected to fall below 14 million when the industry releases the final numbers for 2022 later this week – the lowest in more than a decade.

By comparison, new vehicle registrations in Germany reached 2.65 million in 2022, a slight increase from the previous year, the country’s Federal Motor Transport Authority (KBA) said on Wednesday.

According to SMMT, electric vehicles are now the second most popular choice for new buyers after gasoline-powered cars. Diesel’s market share in the UK shrank by 40% from the previous year.

But SMMT said a lack of charging infrastructure and the UK government’s plans to introduce road taxes on electric vehicles from 2025 were a barrier to further growth.

Charging points are currently being installed at a rate of just 23 per day, according to SMMT, well below the 100 per day needed to meet the government’s minimum threshold of 300,000 outlets by 2030.

“Accelerated investment in charging infrastructure is needed so consumers are confident they can make the switch and brands have a chance to secure enough supply to support UK market growth and not lose out to other markets that are investing. faster,” he said.

In its latest outlook, published in October, the SMMT forecasts 1.8 million new car registrations in 2023, worth around £8.4 billion ($10 billion).

— Chris Isidore contributed to this report.

Source: CNN Brasil

You may also like

Get the latest

Stay Informed: Get the Latest Updates and Insights

 

Most popular