X

X

Mortgage & Property

New Insurance Professional

Family Office Bulletin

Advertise

Mortgage Property

Insurance Professional

Family Office

New car registrations fall as supply chain crunch continues

Private new car registrations were lower on the year in October, according to fresh industry figures on Thursday morning, as both supply constraints and demand held back the market.
A total of 58,405 new cars were registered in the UK in October, according to the Society of Motor Manufacturers and Traders (SMMT), down from the 60,422 registered a year ago and the 60,100 new cars recorded in October 2019, pre-pandemic.

Total registrations, including business and fleet sales, totalled 106,265, which was also below the year-ago and two-years-ago numbers, which were 140,945 and 143,300, respectively.

Gabriella Dickens, senior UK economist at Pantheon Macroeconomics, said new car registrations had been “extremely weak” compared to their pre-Covid level over the past few months, largely due to ongoing supply chain issues.

“The picture remained gloomy in October-private registrations were 17.9% below their average October level in the five years prior to Covid – though there was a decent improvement from September when sales were a whopping 38.6% below,” she said.

“Shortages of inputs, including semiconductors, and ongoing labour shortages probably were the key driver of the weakness in sales.”

Even so, Dickens noted that demand was subdued, as consumer confidence deteriorated.

GfK’s major purchases index fell to -10 in October from -6 in September, below its long-run average of -1, and in addition, Gabriella Dickens pointed to Google Trends data, which showed searches for the five most popular car models last month were 15% below their 2016-to-2019 average in the final week of October, and only slightly higher than in September when the shortfall was 17%.

New car registrations, October 2020
Pantheon Macroeconomics

“Looking ahead, we doubt car sales will return to their pre-Covid norm next year, even if supply constraints ease,” she said.

“Consumers’ confidence looks set to remain subdued as households’ real incomes come under pressure from rising taxes and higher CPI inflation.

“Rising interest rates also will increase the cost of purchasing a new car with finance.”

However, car sales were likely to rebound in 2023, she said, when consumers would be “on the other side” of the surge in inflation, and confidence should have recovered.

“Cheaper mass-market electric vehicles should be more readily available by then.

“In addition, some households might finance new car purchases by drawing on their savings, which in September were a huge £187bn above the level they would have reached had pre-Covid trends continued.”

This Week’s Most Read

  • Investing for the year ahead: eight funds and investment trusts for 2022

    The year end is a natural time for people to review their investment portfolios and ensure it is well positioned for the year ahead. Ryan

  • Is your art in the right place?

    By Arthur Byng Nelson, Solicitor and Legal Director at law firm Harold Benjamin. Introduction: Clients with Art For some wealthy individuals a great deal of

  • SJP celebrates its 1000th Chartered Financial Planner

    St. James’s Place (SJP) celebrates surpassing its 1000th adviser to achieve Chartered status. Former law graduate, Molly O’Donnell, came into SJP via the Academy and,

  • Invesco: Outlook for ESG in 2022

    By Cathrine de Coninck-Lopez, Global Head of ESG at Invesco. I have every reason for optimism in 2022. There is clear progress in the environmental,

  • Silent Cyber: a threat for financial advisers?

    By Chris Davies, Executive Director & Co-Lead of IFA Business Unit at Howden The way many of us work has seen a fundamental shift since

  • 7IM partners with Door to strengthen regulatory and stewardship strategies

    7IM today announces that it has partnered with Door, a company dedicated to improving due diligence processes, in a move that will assist the firm

  • Selling the family-owned business: Key considerations for families looking to sell and protect the family legacy

    By Richard Lane, partner in the Corporate and Family Business team at leading law firm Farrer & Co. For a family business owner, the smooth

  • AJ Bell Active v Passive Report 2021

    Only a third of active equity funds (34%) beat a passive alternative this year, according to our latest Manager versus Machine report Active outperformance was

  • The Fall and Rise of Structured Products

    In this episode Ian Lowes, the founder of Structured Products Review, speaks about why the pre-packaged investment strategy is so misunderstood, and how so many

  • Square Mile Academy of funds report ratings round up for November

    Five new ratings, including three Responsible ratings One rating upgraded One fund reintroduced to the Academy of Funds Analysts at Square Mile Investment Consulting and

Keep updated on the most important financial events 

Make sure you are an informed

wealth professional..

Adblock Blocker

We have detected that you are using

adblocking plugin in your browser. 

IFA Magazine