Car industry suffers second worst May in three decades

The UK’s automotive sector suffered its second weakest May well in 3 many years, figures show.

Just 124,394 new automobiles were being registered final thirty day period, the Modern society of Motor Manufacturers and Traders (SMMT) said.

That was down 20.6% as opposed with the exact month past year.

It was the next least expensive variety of new cars registered in May perhaps considering the fact that 1992.

Only Could 2020 – when the Uk was in a coronavirus lockdown – was even worse for the field.

The SMMT attributed the decrease to shortages of parts which are reducing car availability “despite demand”.

Registrations of pure electrical automobiles bucked the total craze past month, with a 17.7% year-on-12 months maximize.

Electrified cars these kinds of as pure electrics, plug-in hybrids and hybrids accounted for 3 out of 10 new cars in May perhaps.

When there are some signals of dented buyer self-assurance now dampening auto-purchasing need from its the latest highs, the primary concern in the new auto current market lies with supply rather than demand from customers with most brands and dealerships boasting bulging orderbooks and prospective buyers generally waiting around lots of months for deliveries

Ian Plummer, Auto Trader

SMMT chief government Mike Hawes stated: “In nevertheless an additional difficult thirty day period for the new car or truck current market, the industry proceeds to struggle ongoing international components shortages, with increasing battery electric car or truck uptake one particular of the number of vivid places.

“To proceed this momentum and drive a sturdy mass market place for these cars, we need to make sure every single customer has the assurance to go electric powered.

“This requires an acceleration in the rollout of accessible charging infrastructure to match the increasing variety of plug-in cars, as nicely as incentives for the invest in of new, cleaner and greener cars and trucks.

“Delivering on net zero signifies renewing the vehicles on our roads at tempo, but with climbing inflation and a squeeze on house incomes this will be progressively tricky, until organizations and private customers have the assurance and encouragement to do so.”

Ian Plummer, commercial director at automotive categorized advertising business Automobile Trader, stated: “Today’s weak new vehicle figures underline the lingering worries for carmakers, as the war in Ukraine adds to the headwinds of a write-up-Covid shortage of semiconductors, and lockdowns in China.

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“Even nevertheless the microchip scarcity is easing a minimal, suppliers are battling to resource significant components like wiring looms, which are a important Ukrainian export and really hard to substitute.

“While there are some symptoms of dented shopper self-confidence now dampening vehicle-purchasing demand from its modern highs, the most important difficulty in the new car marketplace lies with provide relatively than need with most brands and dealerships boasting bulging orderbooks and prospective buyers typically ready quite a few months for deliveries.”

Alex Buttle, co-founder of applied vehicle marketplace Motorway.co.united kingdom, reported electrical auto profits “provide a beacon of hope to the automobile industry that items are not all doom and gloom”.