Parts problem stalls car sales
SUPPLY ISSUES SPARK 16% PLUNGE
A NEW car shortage dented sales in April, triggering a near 16% slump.
Parts shortages – especially for semiconductors – meant dealers struggled to source enough vehicles to meet customer demand.
Trade body the Society of Motor Manufacturers and Traders said supply problems were the main reason that April new car registrations fell 15.8% year-on-year to 119,167.
With little hope of a supply breakthrough the SMMT also slashed its forecast for annual sales to 1.72 million, down from a 1.89 million total it predicted in January.
As well as semiconductors, manufacturers are short of palladium for catalytic converters in exhausts, and nickel used for batteries.
Mike Hawes, SMMT chief executive, said: “The worldwide semiconductor shortage continues to drag down the market, with global geopolitical issues threatening to undermine both supply and demand in the coming months.”
Last month’s decline was driven by company car sales as dealers focused their limited stocks on supplying private buyers.
Just under 12,900 electric cars were bought in April, up 41% on last year.
Meanwhile new car shortages kept demand high for used cars.
Autotrader said the average price for a second-hand car had leapt by nearly one third in the past year.
Meanwhile Jim Holder, editorial director at What Car? magazine, said: “While there are some positive trends in these figures, they offer little in the way of cheer – the automotive industry is in an increasingly precarious position.”
The best selling new cars last month were both crossover SUVs – the Nissan Qashqai followed by Ford’s Puma.