Chip crisis drives car sales to a 24-year low
CAR sales plunged to a 24-year low due to supply-chain disruption including the global shortage of microchips.
New registrations fell 14.3 per cent to 243,479 vehicles last month. .
It was the weakest March since 1998 – just before the introduction of two annual number plate changes.
The Society of Motor Manufacturers and Traders (SMMT) said the figures were a blow for the sector as March is usually its strongest month, accounting for 20 per cent of annual sales.
Even with the lifting of pandemic restrictions, the number of new cars snapped up in the first quarter was down 1.9 per cent on last year.
SMMT chief executive Mike Hawes said: “March is typically the biggest month of the year, so this performance is deeply disappointing and lays bare the challenges ahead.
“While demand remains robust, this decline illustrates the severity of the global semiconductor shortage, as manufacturers strive to deliver the latest, lowest-emission vehicles to eagerly awaiting customers.”
However, the industry lobby group said March was the best month yet for battery-electric vehicles (BEV). They
now account for 16.1 per cent share of the market after sales last month shot up 78.7 per cent to 39,315. Hybrids rocketed 28.4 per cent to 27,737.
For the quarter, BEV sales more than doubled to 64,165, while hybrids accelerated 52.2 per cent to 48,112.
However, Mr Hawes warned Russia’s war on Ukraine could further hamper supply chains, while the squeeze on household incomes could hit
demand. He said: “The Government must do all it can to support consumers so that the growth of electric vehicles can be sustained and the UK’s ambitious net-zero timetable delivered.”
James Fairclough, boss of AA Cars, said: “The cost-of-living crisis is having an impact on purchasing power, which with the continued interruption in the global supply of parts means new car dealers are facing challenging times.”