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Over 39,000 zero emission cars left dealerships last month, more than during the entirety of 2019 and an increase of 78.7% on the same month last year, according to statistics released by the Society of Motor Manufacturers and Traders (SMMT) today (5 April).
The BEV market share reached 16.1% while plug-in hybrids (PHEVs) fell slightly to 6.6% and hybrids (HEVs) grew to 11.4%, meaning 34.1% of all vehicles sold were electrified.
Sales of battery and hybrid vehicles bucked the overall trend, which saw new car registrations fall by 14.3% compared to March last year to 243,000. Ongoing supply chain shortages – especially of semiconductors – continued to squeeze supply during what is normally the industry’s busiest month as buyers demand the latest numberplate, the SMMT said.
“Given around 20% of total annual registrations are usually recorded in March, the result is massively disappointing for the sector and underscores the long-term impact the pandemic is wreaking on the industry,” an announcement said.
Overall sales were down 1.9% in Q1 this year, even though industry was limited to ‘click and collect’ sales in the same period last year.
Longer-term uncertainty remains, with Russia’s invasion of Ukraine raising risk to supply chains. Rising energy costs, fuel costs, inflation and a squeeze on household incomes could further decrease demand for new vehicles.
There are “significant benefits” for drivers able to buy now however, the SMMT said, including low interest rates, ongoing grants for BEVs and lower running costs for electric cars.
“March is typically the biggest month of the year for the new car market, so this performance is deeply disappointing and lays bare the challenges ahead,” said SMMT chief executive Mike Hawes.
“While demand remains robust, this decline illustrates the severity of the global semiconductor shortage, as manufacturers strive to deliver the latest, lowest emission vehicles to eagerly awaiting customers. Placing orders now will be beneficial for those looking to take advantage of incentives and lower running costs for electric vehicles, especially as the Ukraine crisis could affect supply still further. With increasing household and business costs, government must do all it can to support consumers so that the growth of electric vehicles can be sustained and the UK’s ambitious ‘net zero’ timetable delivered.”
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