UK car sales set for worst year since 1982 as China lockdowns and inflation hit home

UK CAR sales are on track to fall to their lowest level since 1982 as parts shortages, soaring inflation and squeezed incomes cast a pall on the industry.

Car sales grew by a quarter last month but sluggish sales through the rest of the year mean the industry is on track to sell just 1.57m cars in 2022, according to the Society of Motor Manufacturers and Traders (SMMT).

If the forecast bears out, it would be the lowest annual total for 40 years; 1.55m cars were sold in Britain in 1982.

Mike Hawes, SMMT chief executive, said: “A strong October is hugely welcome, albeit in comparison with a weak 2021, but it is still not enough to offset the damage done by the pandemic and subsequent supply shortages.”

Manufacturers have been stymied by parts shortages after lockdowns brought factories to a standstill across the world. China’s zero-lockdown policy means disruption there continues.

Last year 1.65m new cars were registered, compared to a recent peak of 2.47m reached in 2014.

The SMMT expects 2022 to be the nadir for the industry, with 1.8m vehicles forecast to be sold next year. Mr Hawes said: “Next year’s outlook shows recovery is possible and electric vehicle (EV) growth looks set to continue but, to achieve our shared net-zero goals, that growth must accelerate and consumers are given every reason to invest.

“This means giving them the economic stability and confidence to make the switch, safe in the knowledge they will be able to charge – and charge affordably – when needed.”

Electric car sales continued to grow in October. Battery electric vehicle registrations increased by 23.4pc to 19,933 and sales of hybrid vehicles charged from the grid rose by 6.2pc to 8,899.