UK New Car Registrations UP in June, but DOWN on 10-year June Average – Blame ‘Covid and Chips’

New car registrations in the UK rose by 28% in June compared to June 2020, but Covid hangover and Chip shortages hampered recovery.

As you’d expect, new car registration in June easily surpassed those in June 2020 when car dealers were grappling with a new way of working amid the Covid pandemic.

A year on, things are getting back to some semblance of normality, and new car registrations have risen by 28 per cent compared to the same period last year – for a total of 186,128 – although that’s still down 16.4 per cent on the 10-year June average.

The blame for the shortfall compared to the last decade is put down to a ‘Long-Covid’ effect, in particular the shortage of semiconductors (Chips) needed to build cars these days, and in huge demand from other industries. 

Perhaps the biggest news on new registration last month is the Tesla Model 3 sitting at the top, although that’s more down to Tesla’s odd practice of end-of-quarter loading than a massive uptick in interest in EVs.

That loading by Tesla has helped BEVs take 10.7 per cent of sales in June, with Plug-in Hybrids another 6.5 per cent, petrol-engined cars 46.4 per cent and diesel just 8.1 per cent.

Mike Hawes, SMMT boss, said:

With the final phases of the UK’s vaccine rollout well underway and confidence increasing, the automotive sector is now battling against a ‘long Covid’ of vehicle supply challenges. The semiconductor shortages arising from Covid-constrained output globally are affecting vehicle production, disrupting supply on certain models and restricting the automotive recovery.