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New Car in UK Sales Suffer Worst June Since 1996
Reading time 4 minutes
Categories Automotive Industry » Driving News »
It’s been a turbulent time for the automotive industry of late, and unfortunately, this trend looks set to continue, if recent sales figures are anything to go by.
June 2022 saw new car sales suffer their worst slump since 1996 – 26 years ago. Only 140,958 cars were registered in the month, 24% less when compared with the same period in 2021. And unfortunately, this decline shows no signs of slowing down as July also saw a drop of 9%, the fifth consecutive month that sales had dropped. For some models, drivers are even having to wait more than a year to get their hands on them.
Data Source: smmt.co.uk
There are a variety of reasons why the industry is suffering so much, and in this blog, we’ll take a look at some of the main causes, and other factors the sector is currently contending with.
A whole host of variables have contributed to the recent decline in new car sales, but undoubtedly the primary reason is to do with a shortage of semiconductor chips. A semiconductor chip is an electronic component that plays a fundamental role in the manufacturing process of vehicles, and without them, cars cannot be completed. While the automotive industry is not alone when it comes to being impacted by the chip shortage – mobile phones, game consoles, white goods and a range of household appliances also use them – the automotive sector has been affected more than most. This is because vehicles require more specialised chips in order to work correctly.
While the chip shortage is one of the primary causes of the low sales, other global factors have also played a part. For example, due to ongoing COVID-19 lockdowns in China, many key logistics and manufacturing hubs have had to close their doors. Plus, Russia’s war in Ukraine has also slowed down manufacturing as a vast array of car parts are normally manufactured in the region.
Furthermore, even when vehicles do become available, the ongoing cost of living crisis in the UK is likely to see much of the population try and save money wherever possible – meaning splurging on a brand new vehicle is less likely than in previous years.
And these sale patterns are likely to remain for a while yet, with the semiconductor chip shortage set to last well into 2023.
While across the board UK new car sales in 2022 remain lower than average, one area of the automotive industry that has seen an increase in activity is electric vehicles. 16% of all cars registered in June were EVs, a 5% rise compared to the same month last year.
In total for 2022, electric vehicles have held a 13% market share, with 70% of the market’s most-sold cars in the month of June being electric.
There are a variety of reasons why we might be seeing this uptick. Primarily, many consumers are more conscious about their environmental impact these days – meaning EVs have become a more attractive proposition. As well as this, in the wake of a cost of living crisis, the fact that EVs (depending on the type) are exempt from road tax, congestion charges and emission charges means that people may opt for them to save money on vehicle expenses.
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Driving with a chipped or cracked windscreen is extremely dangerous, and in some instances illegal, so it’s vital you get the issue addressed as soon as you can. We provide all of our clients with a mobile windscreen replacement offering, where we’ll head to a location of your convenience to carry out the work. This includes offering ADAS recalibration on vehicles that require it.
Operating across the West Midlands and South East, get in touch with The Windscreen Company today to find out more.
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