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Supply chain shortages hit the UK’s new car market last year, though battery electric vehicles grew in popularity, the Society of Motor Manufacturers & Traders said on Thursday.
The UK automotive industry trade association said supply chain shortages, particularly in chips, subdued the new car market in 2022. New car registrations amounted to 1.6 million units, down 2.0% from a pandemic-afflicted 2021.
However, the SMMT also noted battery EVs claimed its largest ever monthly market share of 33% in December. This helped battery EVs become the UK’s second most popular powertrain for 2022 as it comprised of 17% of yearly registrations, surpassing diesel for the first time.
SMMT said the UK’s new car market recorded a fifth consecutive month of growth in December, increasing by 18% to reach 128,462 new registrations.
But the better second half performance was not enough to offset declines recorded in the first half of 2022.
This is pandemic-related global parts shortages saw overall registrations for the year fall 2.0% to 1.6 million or around 700,000 units below pre-Covid levels, despite underlying demand.
SMMT said constrained supply meant many manufacturers prioritised deliveries of zero emission-capable models, prompting the boom in EV market share.
SMMT said more needed to be done to ensure drivers in every part of the UK could benefit from switching to EVs during 2023, citing how plans to introduce a vehicle excise duty on battery EVs from 2025 with the same premium threshold as internal combustion-engine cars will ‘disproportionately penalise those moving to electric’.
It added chargepoint provision remains a barrier to EV uptake, as the government’s EV infrastructure strategy forecast that the UK would require between 300,000 and 720,000 chargepoints by 2030. Meeting the lower number would require more than 100 new chargers to be installed per day, while the current rate is around 23 per day, SMMT said.
‘For a nation aiming for electric mobility leadership, that must be matched with policies and investment that remove consumer uncertainty over switching, not least over where drivers can charge their vehicles,’ said SMMT Chief Executive Mike Hawes.
Looking ahead, it said supply chains are beginning to stabilise but predicted erratic supply to impact manufacturing throughout 2023, despite easing semiconductor shortages.
By Greg Rosenvinge, Alliance News reporter
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