UK new car market declines amid supply constraints

London – New UK car registrations fell 20.6% year-on-year to 124,394 units in the second weakest May since 1992, after the 2020 pandemic-hit market.

Supply shortages continued to hamper new purchases and the fulfilment of existing orders, the Society of Motor Manufacturers and Traders (SMMT) announced 6 June.

The May figures, SMMT added, are 32.3% below the 2019 pre-pandemic level despite strong order books.

Year-to-date, the market has posted an overall decline of 8.7%, equivalent to 62,724 fewer units, according to SMMT. This is 40.6% below the five-year average recorded from January to May, as the new car market continues to struggle to emerge from the impact of the pandemic.

During the month of May, private consumer purchases fell 10.3%, although their market share increased year-on-year by 6.1 percentage points to 53.2%.

SMMT linked the market share growth to manufacturers "striving to fulfil deliveries" – particularly of electric vehicles – to private buyers.

“Despite the myriad challenges affecting the industry and a high level of market distortion… manufacturers have worked hard to sustain progress towards the decarbonisation of road transport,” said the association.

May saw registrations of battery electric vehicles (BEVs) rise by 17.7%, representing one in eight new cars joining the road last month.

Plug-in hybrids declined 25.5%, while hybrids were up 12.0%, meaning deliveries of electrified vehicles accounted for three in 10 new cars.

Superminis continued to be the most sought-after segment by British motorists, making up 32.7% of registrations in the month, despite their registrations falling 16.4% to 40,667 units.

“In yet another challenging month for the new car market, the industry continues to battle ongoing global parts shortages, with growing battery electric vehicle uptake one of the few bright spots,” said SMMT chief executive Mike Hawes.

To continue this momentum, Hawes called on the government to accelerate the rollout of accessible charging infrastructure to match the increasing number of plug-in vehicles.