• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 hours How Far Have We Really Gotten With Alternative Energy
  • 8 days What fool thought this was a good idea...
  • 11 days Why does this keep coming up? (The Renewable Energy Land Rush Could Threaten Food Security)
  • 6 days A question...
  • 11 days They pay YOU to TAKE Natural Gas
  • 17 days The United States produced more crude oil than any nation, at any time.

The UK’s Automotive Industry Is Beginning To Stabilize

New figures show this morning that months of decline in the new car market has come to a halt.

Registrations of new cars increased by 1.2 percent last month compared with August 2021, according to the Society of Motor Manufacturers and Traders (SMMT).

Some 68,858 new cars were registered in the first monthly growth since February.

Sales of new cars during the year so far are 35.3 percent down on the same period in the pre-pandemic year of 2019.

August is traditionally one of the quietest months of the year for the industry as many buyers choose to wait for new number plates to be released in September.

The uptake of pure electric new cars is slowing.

Year-to-date registrations are up 48.8 percent, compared with 101.9 percent at the end of March.

SMMT chief executive Mike Hawes said: “August’s new car market growth is welcome, but marginal during a low volume month.

“Spiralling energy costs and inflation on top of sustained supply chain challenges are piling even more pressure on the automotive industry’s post-pandemic recovery, and we urgently need the new Prime Minister to tackle these challenges and restore confidence and sustainable growth.

“With September traditionally a bumper time for new car uptake, the next month will be the true barometer of industry recovery as it accelerates the transition to zero emission mobility despite the myriad challenges.”

Ian Plummer, commercial director at automotive classified advertising business Auto Trader, said: “The SMMT’s sales figures highlight just how much the industry’s ongoing supply challenges remain the key factor holding back the market.

“But energy price rises are beginning to bite ahead of October’s surge in the energy price cap, and our data is beginning to show early signs of a waning of appetite for electric vehicles as buyers weigh up higher charging costs against running a traditionally fuelled vehicle.”

Related: Further OPEC+ Production Cuts Could Be Looming


Richard Peberdy, UK head of automotive at professional services company KPMG, said: “A slight easing of global supply shortages is leading to a welcome increase in UK car production and new car sales.

“But a rising cost of living threatens consumer appetite, whilst rising energy and other inflationary costs are putting pricing under pressure.

“The remainder of 2022 is set to further challenge the UK car industry, despite the welcome easing of component availability.”

By CityAM

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News