UK Automotive Industry Faces Second Weakest May in Three Decades

The UK’s automotive industry is facing tough times, with May 2022 marking the second weakest month in three decades for new car registrations. The Society of Motor Manufacturers and Traders (SMMT) reported that only 124,394 new cars were registered last month, a 20.6% decrease compared to the same period last year. This decline is attributed to shortages of components, which are impacting vehicle availability despite demand.

However, amidst this challenging environment, there is a glimmer of hope in the form of electric vehicles. Registrations of pure electric cars saw a 17.7% year-on-year increase in May, with electrified vehicles accounting for three out of 10 new cars. This trend highlights the growing interest in cleaner and greener transportation options.

SMMT chief executive Mike Hawes emphasized the importance of accelerating the rollout of charging infrastructure and providing incentives for the purchase of electric vehicles to drive a robust mass market for these cars. With the goal of achieving net zero emissions, it is crucial to renew the vehicles on the roads at a faster pace.

Ian Plummer, commercial director at Auto Trader, pointed out the challenges faced by carmakers, including the impact of the war in Ukraine and ongoing semiconductor shortages. Despite some signs of dented consumer confidence, the main issue in the new car market lies with supply rather than demand.

On a positive note, Alex Buttle, co-founder of Motorway.co.uk, highlighted the beacon of hope provided by electric vehicle sales. This demonstrates that there is still potential for growth and innovation in the automotive industry, even in the face of adversity.

As the industry navigates through these challenges, it is essential for stakeholders to work together to overcome obstacles and drive positive change. By focusing on sustainability, innovation, and collaboration, the UK’s automotive sector can emerge stronger and more resilient in the years to come.