Your new car isn’t coming home: June sales slip to lowest level since the days of Euro 1996 as supply crunch means manufacturers can’t meet orders
Junie 1996 was the month when ‘football came home’, with England hosting Euro ’96 and the country embroiled in a summer sporting frenzy.
That month, soundtracked by Baddiel & Skinner’s Three Lions refrain of ‘it’s coming home’, was also the last time that Britons bought so few new cars, with figures today confirming the worst June for registrations in 26 jare.
That came as supply shortages ‘shackled’ the number of vehicles delivered to customers despite manufacturers’ bursting order books.
Amper 141,000 cars were registered during last month, wat af is 24.3 per cent on sales in June 2021, official records show.
The last time so few new cars were bought by Britons in June was 1996 – the summer when football came home as England hosted the European Football Championships from 8-30 Junie
Sales were lower than in the same month of 2020, though June that year was the first time dealers were allowed to open their doors to customers since the lockdown was put in place
The Society of Motor Manufacturers and Traders (SMMT) blamed the ongoing global shortage of components – predominantly semiconductors – for hampering manufacturers’ ability to fulfil orders.
The shortage of computer chips required in tech-heavy new cars has had a stranglehold on the automotive sector since the pandemic hit in 2020.
This limited availability has continued and means drivers are being forced to wait more than 12 months to take delivery of some models, with the most in-demand cars subject to lead times of up to two years.
There are also increasing concerns over the level of demand for new vehicles during a cost of living crisis.
Experts say Britons are having to cut back on big-ticket purchases due to higher energy, food and fuel bills, which could reflect on the new car market in the coming weeks.
Verlede maand, the SMMT also warned that UK car makers are facing a 50 per cent increase in energy bills this year, which has put them at a ‘competitive disadvantage’ against European Union rivals, whose energy costs are around £90million a year lower.
Worst June for new car sales in 26 jare: Net 141,000 motors were registered last month despite manufacturers having bursting order books
Industry insiders also say there are examples of brands increasing their car prices, as they look to recoup some of the higher energy and transportation costs experienced currently.
This combination of factors has seen just 802,000 new cars delivered to customers in the first six months of 2022 – amper 12 per cent behind the half-year report for 2021.
Taking lockdown-hit 2020 out of the equation, the SMMT says it is the lowest volume of new vehicle sales recorded in the opening half of a year since 1992 with chief executive Mike Hawes saying the semiconductor shortage is ‘stifling the new car market even more than last year’s lockdown’.
Jamie Hamilton, automotive partner at Deloitte, bygevoeg: ‘Built up demand means many dealers have their order books full for the rest of the year. Egter, with consumer confidence at an all-time low, real wages in decline, and record prices at the pumps, the economic headwinds are gathering.
'As gevolg daarvan, there will be some nervousness around the market in 2023.’
David Leggett, an automotive analyst at GlobalData says the market will struggle to reach 1.6 million units, with the SMMT’s latest projection being for 1.8 million new car sales in 2023.
‘At that level, 2023’s UK new car market would still be over a fifth down on 2019’s 2.3 million sales. A weak recovery is in prospect,’ het hy gewaarsku.
The SMMT said demand for electric cars is ‘one bright spot’ for the sector as more customers make the transition to battery-powered models
Electric car sales continue to buck the trend
Despite a wider decline in registrations, sales of fully-electric cars were up almost 15 persent verlede maand, as demand remains high for the latest green vehicles.
Met 22,737 registered in June, it means more than one in six new cars bought in the UK are battery powered.
In kontras, diesel car sales fell by 44 per cent and petrols declined by 28 per cent in the same month.
‘Electric vehicle demand continues to be the one bright spot, as more electric cars than ever take to the road,’ Hawes explains.
‘Maar, while this growth is welcome, it is not yet enough to offset weak overall volumes, which has huge implications for fleet renewal and our ability to meet overall carbon reduction targets.
‘With motorists facing rising fuel costs, egter, the switch to an electric car makes ever more sense and the industry is working hard to improve supply and prioritise deliveries of these new technologies given the savings they can afford drivers.’
Battery Electric Vehicles (BEVs) now account for more than one in six new cars sold in the UK. Diesel and petrol registrations fell 44% en 28% respectively year-on-year in June
Separate figures from green motoring consultancy New AutoMotive show 16 per cent of new cars registered in June were pure electric, vanaf 11 per cent during the same month last year.
The company’s co-founder, Ben Nelmes, said electric cars ‘defied gravity’ last month by ‘continuing to grow while overall new car registrations were down by a quarter’.
Rising petrol and diesel prices are ‘driving consumers towards electric cars’ but the supply of vehicles ‘cannot keep pace with demand’, het hy gewaarsku.
‘We hear that delivery times for electric cars are now between 40 weeks and a year.
‘The supply of electric vehicles is the biggest barrier to cleaner road transport in the UK.’
In terms of the most-bought cars, Vauxhall’s Corsa – the most popular new model in 2021 – has extended its lead at the top of the sales charts this year with 5,014 registered in June.
In second with 4,194 registrations last month was the electric Tesla Model Y SUV, with the US brand traditionally delivering new vehicles in bulk to UK customers at the end of each quarter.
Vauxhall’s Corsa (links) extended its lead at the top of the sales charts this year with 5,014 registered in June. The electric Tesla Model Y (reg) was second in the rankings, with the US brand commonly bulk delivering vehicles to UK customers at the end of each quarter
The Vauxhall Corsa looks set to retain its title as the most-bought new car in 2022 – it is almost 4,000 units ahead of the closest rival, Ford’s Puma, in the first half of the year