Car Industry Update: Pandemic Hit Car Sales Records And
July was the weakest month for new car sales since July 1998, according to newly released figures.
Just 123,296 new cars were registered in the UK last month, according to data from the Society of Motor
Manufacturers and Traders (SMMT).
This is a 29.5 per cent decrease from July 2020.
The decline was "artificially heightened," according to the SMMT because sales climbed during the same month
last year when showrooms were open for a full month for the first time since the original coronavirus closure.
However, due to the global scarcity of semiconductor chips and an increase in the number of people instructed to
self-isolate, last month's total was 22.3 per cent lower than the 2010-2019 average for July.
In the United States, the usage of plug-in cars is increasing, with battery electric vehicles accounting for 9.0 per
cent and plug-in hybrids accounting for 8.0 per cent.
The SMMT has reduced its forecast for total registrations for the year to about 1.82 million, reflecting an 11.7
per cent increase over last year's numbers but falling short of April expectations.
'Automotive Sector to Battle Against Shortages' Says SMMT CEO
According to SMMT chief executive Mike Hawes, the automotive sector is still dealing with shortages of
semiconductors and workers, which is limiting our capacity to transform a better economic outlook into a
Changes to self-isolation regulations are expected in the coming weeks, which could aid firms dealing with
employee absences throughout the sector, but the semiconductor shortage is expected to last at least the
remainder of the year.
As a result, they have marginally reduced the market forecast for 2021.
The bright light, however, is the rising demand for electrified cars as customers respond to these new
technologies in ever greater numbers, driven by more product variety, fiscal and financial incentives, and a
pleasurable driving experience.