30-year Low For UK New Vehicle Sales

Throughout 2022, 1.61 million new cars were registered in the UK, the lowest level since 1992. Despite an upward trend in the second half of the year which saw vehicle registrations grow five months in a row, recent Motor trade figures reported the drop in new vehicle sales, reaching their lowest point in 30 years.

The recent upward trend is expected to continue during 2023 despite ongoing media reports of recession, and The Society of Motor Manufacturers (SMMT) and Traders are predicting sales of around 1.8 million.

Although demand for new vehicles still remained high, production lines were constantly interrupted by a shortage of parts which added to a long list of other challenges the industry navigated. One major problem was the global shortage of semiconductors used for vehicle electronic systems; auto technicians will know these chips mange everything from the engine to in-car entertainment.

Mike Hawes, chief executive of the SMMT said “It’s still the long Covid effect,”. “The key issue is global disruption to supply chains,” he added. “The demand we know is there… manufacturers have just really struggled to be able to make vehicles in sufficient quantities.”

Like many markets the motor trade industry continued to feel the impact of the global pandemic following a period of restrictions and lockdowns, some dealerships were 25% down on 2019 which was considered to be the last “normal” year before Covid.

However, some good news for motor dealer forecourts saw demand for electric vehicles (EVs) account for nearly a fifth of new car sales in 2022 as the interest for these vehicles continues to rise rapidly. Though the SMMT has recently warned that EV charging facilities and infrastructure is falling behind vehicle demand and is not increasing quickly enough to reach the government’s target of having 300,000 by 2030.

Mike Hawes said, “To get to that 300,000, you need about 100 new charging points to be installed every day until 2030. 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.”

Nissan Qashqai was the UK’s favourite car of 2022, the model designed in Paddington, engineered in Cranfield, and built in Sunderland has become the first British-built model to top the annual sales charts for over 20 years. The UK’s top five selling cars of 2022 were:

Nissan Qashqai – 42,704

Vauxhall Corsa – 35,910

Tesla Model Y – 35,551

Ford Puma – 35,088

Mini – 32,387

Sales of electric cars rose from 190,700 to 267,000 – their market share increasing by 5% to 16.6%. In December alone that figure rose to just over 30%. The bulk of those electric vehicles were purchased by businesses and fleet customers, they made up over 65% of all EV registrations in 2022. But while EV sales are still rocketing, the SMMT has concerns about government policy and the vehicle charging infrastructure.

Some are starting to worry about future investment decisions as new diesel and petrol car sales are due to be banned in 2030, although some hybrids will still be allowed until 2035. In 2024 a Zero Emission Vehicle (ZEV) mandate is due to come into force compelling motor manufacturers to ensure a percentage of the vehicles they sell are fully electric, however, rules on how these targets are to be implemented have yet to be decided. EVs will no longer be exempt from vehicle excise duty from April 2025 as part of a government plan to make the motoring tax system “fairer”.

Erin Baker, editorial director at Auto Trader, said “EVs need to be easier to afford, charge and buy to continue the positive sales trajectory and ultimately to meet the government’s target.”