WHILE the end of lockdown means a return to some kind of normality, it’s not for UK car sales with the vehicle market now largely out of sync with the typical patterns that define sales across a given year, and July was no exception.
Commenting on the latest SMMT Car Registration figures, Karen Johnson, Head of Retail and Wholesale at Barclays Corporate Banking, said: “July saw a huge contraction in sales of both diesel and petrol vehicles, with electric and hybrid vehicles the only areas showing signs of growth. Concerns about environmental impacts, as well as ever-evolving patterns of work and social life, have driven many consumers away from traditional petrol and diesel models.
“Looking ahead, supply issues for semi-conductors are expected to continue throughout 2021 for a number of brands, and so dealers are now faced with questions around both demand from potential buyers and availability of new cars from manufacturers.”
John Wilmot, Chief Executive and founder ofleasing comparison website LeaseLoco, added: “Semiconductor and staff shortages are causing major disruptions to UK car production lines and have thrown a spanner in the works as the UK motor industry looks to rebound from a torrid 18 months.
“When car production does start to crank up, the industry has a great deal of work to do to regain the trust of customers who have been frustrated by long delivery times and may have lost faith in the new car market.
“July figures also show just how important electric and hybrid sales will be if any rebound is to have substantial momentum behind it. Plug-in sales remain the light amongst the gloom and continue to show the path to recovery.
“There is a clear message being sent out by UK consumers that they are keen to go green. The Government needs to act on this information, and ensure that consumers are incentivised and motivated to buy electric and hybrid cars.“
Meryem Brassington, electrification propositions lead at Lex Autolease, part of Lloyds Bank Motor Finance and Leasing, said thefigures demonstrate great progress towards net zero and puts the UK well on track to surpass the 108,000 electric vehicles registered in total in 2020 by autumn this year.
“The recent Transport Decarbonisation Plan and other commitments are a strong signal of intent from the Government to keep the UK as a world leader in electrification. But there’s no time for complacency to creep in. Policy makers and manufacturers must continue to work together to address charging infrastructure and the second-hand EV market to ensure that battery vehicle adoption is both accessible and affordable for everyone.”
