UK car sales forecast drops 9% due to semiconductor shortage

The UK car industry has lowered its forecast for the number of cars it expects to sell this year by 9%.

According to the Motor Manufacturers and Traders Association (SMMT), approximately 1.72 million new cars will be registered in 2022.

This is down from the 1.89 million forecast published in January.

This is seen as the number of new cars registered in April decreased by 16% year-on-year.

Last month, about 119,167 new cars were registered from 141,583 in April 2021.

This is despite the blockade restrictions, which means the showroom was closed for the first 11 days of April last year.

Mike Hawes, Chief Executive Officer of SMMT, said:

“Manufacturers are doing everything they can to provide the latest low-emission and zero-emission vehicles. Those looking to buy will benefit from incentives, low interest rates and reduced running costs. You need to order now.

“To accelerate the transformation of the new car market and the carbon savings required for road transport in these difficult times, it is better not only to solve supply problems, but also to drive customer demand and address the biggest obstacles. We need a wide range of countermeasure packages. We continue to have anxiety. “

Magazines and websites WhatCar? Jim Holder, editorial director of the company, said the latest monthly figures indicate that the automotive industry is “in an increasingly volatile position.”

He has invested billions of pounds in the development of new vehicles, including numerous electric models, but “world events have squeezed production,” he explained, such as a shortage of semiconductors and a war in Ukraine. Did.

He goes on to say: “Although profitable, the industry cannot be expected to thrive indefinitely in such a difficult market. Similarly, consumers focus on the fact that living expenses elsewhere are not essential. So you can’t bear the burden of paying without checking the rising price. Spending. “

Pure electric vehicle registrations overturned the overall trend last month, up 41% year-on-year.

SMMT predicts that plug-in vehicles, such as pure electric vehicles and plug-in hybrid vehicles, will account for more than a quarter of the new vehicle market by the end of 2022.

Alex Buttle, co-founder of the used car market, said: industry. “

Ben Nelmes, co-founder and policy director of green motor consulting firm New AutoMotive, welcomes the “steady growth” of electric vehicles, but the government encourages more people to switch from gasoline and diesel. He said he needed to “go faster” in order to. ..

The government plans to adopt a zero-emission vehicle (ZEV) obligation, which will require manufacturers to sell a certain percentage of these vehicles and vans from 2024.

Nermes called on ministers to introduce this at the level of “ambitious California style.”

The US state has been implementing ZEV obligations since 1990, reaching 22% by 2025.

PA media