New car registrations fell 29.5% across the UK in July as supply shortages weighed on the automotive sector’s recovery.
According to the Society of Motor Manufacturers and Traders, 123,296 new cars were registered last month as the industry recorded its weakest July performance since before the millennium.
Private new car registrations totalled 59,800 in July, below July 2020’s 79,900 reading, and lower than July 2019’s figure of 66,300.
Private registrations were 14% below their average level in the four Julys preceding the Covid-19 pandemic, worse than June’s equivalent 9.8% shortfall, as a result of factory shutdowns caused by key component shortages and staff absences brought about by the “pingdemic”.
Due to the weak performance in July, the SMMT also revised its annual outlook down to 1.82m units.
SMMT chief executive Mike Hawes said: “The automotive sector continues to battle against shortages of semiconductors and staff, which is throttling our ability to translate a strengthening economic outlook into a full recovery. The next few weeks will see changes to self-isolation policies which will hopefully help those companies across the industry dealing with staff absences, but the semiconductor shortage is likely to remain an issue until at least the rest of the year.
“As a result, we have downgraded the market outlook slightly for 2021. The bright spot, however, remains the increasing demand for electrified vehicles as consumers respond in ever greater numbers to these new technologies, driven by increased product choice, fiscal and financial incentives and an enjoyable driving experience.”
