New car registrations DOWN again in May – by over 20%

New car registration in the UK in May 2022 fell by over 20 per cent as continuing supply constraints hit production.

It comes as no surprise to learn that new car registrations in May 2022 were down gain, by 20.6 per cent on 2021, as supply-chain issues limit what car makers can build.

The numbers – 124,394 – are apparently the second-worst May figures in 30 years (if you ignore 2020 when everything was locked down), and, just as it’s been for a while, we also see a big shift in market share for diesel, petrol and AFVs.

The headlines are that private sales dipped by 10.3 per cent – with market share increasing to 53.2 per cent – with cars heading for business and fleet dropping by 27.1 and 29.9 per cent respectively.

The shift in market share also saw one in eight cars powered by batteries – up by 17.7 per cent on last year – and a decline in PHEVs, with diesels down by a whopping 50.8 per cent.

But don’t read too much into the market shift and market share, because the numbers aren’t driven by customer demand but by what car makers are prepared to build with the limited supplies they have of parts.

Car makers are clearly prioritising the production of EVs and of any cars with big margins, and choosing to prioritise sales to private buyers who will pay more than fleet or business buyers.

We’ll not get a clear idea of what the market actually wants in a new car until supply issues are resolved and car buyers can pick what they actually want, not what they’re offered.

SMMT boss Mike Hawes said:

In yet another challenging month for the new car market, the industry continues to battle ongoing global parts shortages, with growing battery electric vehicle uptake one of the few bright spots. To continue this momentum and drive a robust mass market for these vehicles, we need to ensure every buyer has the confidence to go electric. This requires an acceleration in the rollout of accessible charging infrastructure to match the increasing number of plug-in vehicles, as well as incentives for the purchase of new, cleaner and greener cars.