New car market suffers second worst May in 30 years
Mon, 06 Jun 2022
- Second worst May for UK new car sales since 1992, with 124,394 registrations recorded.
- May's sales were 20.6 per cent down year on year and 32.3 per cent below 2019 pre-pandemic levels.
- Battery electric vehicle uptake increased by 17.7 per cent to 15,448 sales.
The new car market experienced the second worst May in 30 years last month, with just 124,394 sales, according to the latest Society of Motor Manufacturers and Traders (SMMT) figures.
Sales were down a fifth (20.6 per cent) on May 2021, the first full month of reopened showrooms following lockdown, and nearly a third (32.3 per cent) below 2019 pre-pandemic levels.
The SMMT blamed the slump on “global supply chain disruptions”, with the ongoing impact of the global semiconductor shortage and the war in Ukraine.
Battery electric vehicle uptake increased by 17.7 per cent to 15,448 sales, representing 12.4 per cent of the month’s registrations, as manufacturers prioritised their supply.
Commenting on the latest figures, Chris Evans, head of sales at online used car marketplace heycar, said: "The supply of new cars continues to be disrupted by the global semiconductor shortage but vehicle manufacturers are working hard to correct this, with some looking at producing their own semiconductors. That said, we are probably six months away from things returning to something we could call normal again.
"The next few months will be extremely challenging. Over the past few weeks, some of our dealer partners have seen a significant drop in footfall. Sales also remain well below the pre-pandemic average, with some dealers selling 50 per cent fewer cars than in 2019. But the transition to electric continues at a pace, with EV leads on heycar up by 46 per cent in May 2022 compared to the same month in 2021."
'Cost of living crisis begins to bite'
James Fairclough, CEO of AA Cars, suggested that buyer demand is weakening.
"As the cost of living crisis begins to bite, with consumers simultaneously grappling with surging fuel, energy and food prices, some are opting to postpone big ticket purchases like a new car," he said.
“The supply problems show little sign of abating, as lockdowns in China and the war in Ukraine exacerbate the shortage of key materials like steel and semiconductors, and hold back levels of car production.
“Against that backdrop, the apparent softening of buyer demand now threatens to create a perfect storm for new car sales."
How many new cars were sold in May 2022?
In total, 124,394 new cars were sold in May 2022, according to the latest Society of Motor Manufacturers and Traders (SMMT) figures.
This made May 2022 the second weakest May on record for 30 years.
How many electric cars were sold in May 2022?
There were 15,448 sales of new battery electric vehicles (BEVs) in May 2022, a 17.7 per cent increase year on year.
BEVs accounted for 12.4 per cent of the month's registrations, as manufacturers prioritised their supply.
What is the average price of an electric car?
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