According to recent data, new automobile registrations in the UK dropped last year to their lowest level in thirty years.
Production lines were affected by persistent component scarcity despite a rebound in the second half of 2022.
In the meantime, the market for electric vehicles grew and now represents roughly a fifth of new car sales.
However, the Society of Motor Manufacturers and Traders warned that charging infrastructure is not being created rapidly enough to meet the demand that is only increasing (SMMT).
In all, 1.61 million new automobiles were registered in the UK in 2022. Since 1992, that was the lowest level.
The Covid pandemic's effects on the market persisted. Sales were around 25% lower than in 2019, the last "normal" year before the epidemic, and slightly lower than in 2021, a time hampered by lockdowns and other limitations.
Despite the continued strong demand for new cars, components were difficult to come by for the manufacturers.
Semiconductors, which are employed in a wide range of electronic systems, from in-car entertainment to engine control, were particularly difficult to get.
According to SMMT CEO Mike Hawes, "it's still the long Covid effect." "Global disruption to supply chains" is the main problem, he continued.
"The demand we know is there… manufacturers have just really struggled to be able to make vehicles in sufficient quantities."
With registrations increasing for five straight months, the situation did dramatically improve in the second part of the year.
Despite concerns about a recession, that tendency is anticipated to persist this year. In 2023, the SMMT predicts sales of about 1.8 million.
The Nissan Qashqai, the first British-built vehicle to top the yearly sales rankings in 24 years, was the most popular vehicle in the UK in 2022.
The model was designed in Paddington, engineered in Cranfield, and built in Sunderland.
Uk's best-selling cars of 2022
- Nissan Qashqai 42,704
- Vauxhall Corsa 35,910
- Tesla Model Y 35,551
- Ford Puma 35,088
- Mini 32,387
- Kia Sportage 29,655
- Hyundai Tucson 27,839
- Volkswagen Golf 26,558
- Ford Kuga 26,549
- Ford Fiesta 25,070
Source: SMMT
Meanwhile, sales of electric vehicles grew further. From 190,700 to 267,000, they increased, and their market share increased from 11.6% to 16.6%.
That percentage increased to a little under 33% in December, however, this is due to the timing of Tesla's international shipments.
Businesses and fleet customers purchased the majority of fully electric cars, accounting for 66.7% of all registrations of this class of vehicle in 2022.
However, despite the fact that sales of electric vehicles are still increasing quickly, the SMMT is concerned about both government policy and the expansion of the infrastructure for charging.
In 2024, there will be a ZEV requirement that will go into effect. It will oblige automakers to guarantee that a certain percentage of the vehicles they sell are entirely electric.
While certain hybrids will still be permitted on the market until 2035, the sale of new gasoline and diesel vehicles is scheduled to be outlawed in 2030.
However, the specific guidelines for achieving these goals have not yet been established, and manufacturers are concerned that this might have an impact on crucial investment choices.
The SMMT also issues a warning that the government's goal of having 300,000 public charging stations by 2030 is not being met since the rate of growth is too slow.
Until 2030, around 100 additional charging stations must be created daily to reach the required 300,000, according to Mr. Hawes.
"Current rates, up until the end of quarter three, were about 23 a day. So the danger is the user experience gets worse before it gets better."
Beginning part of a government initiative to make the motor vehicle tax system "fairer," electric vehicles will no longer be exempt from vehicle excise charges as of April 2025.
The growth in electric car sales, according to Erin Baker, editorial director at Auto Trader, has been a "clear bright spot" in a challenging market, but she is not optimistic that this trend will continue.
According to her, affordability would be the largest issue since the market is affected by rising living expenses and utility costs.
To maintain the upward sales trend, EVs must be more affordable, convenient to charge, and simpler to purchase.
"EVs need to be easier to afford, charge and buy to continue the positive sales trajectory and ultimately to meet the government's target," she said.
Sourced from BBC News
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