Lack of chips to further hit UK car market in 2022 - industry group


FILE PHOTO: Parked cars are seen at the Vauxhall plant as the outbreak of the coronavirus disease (COVID-19) continues, in Ellesmere Port, Britain March 16, 2020. REUTERS/Phil Noble

LONDON (Reuters) - The global semiconductor chip shortage will continue to hurt British car sales throughout this year and into 2023 after making a serious dent in vehicle supply in 2021, an industry group said on Thursday.

The Society of Motor Manufacturers and Traders (SMMT) said around one in six new cars sold in Britain in 2021 was either battery electric (BEV) or a plug-in hybrid (PHEV) and overall new car registrations inched up around 1 percentage point to 1.65 million units versus 1.63 million in 2020.

"Not a great year, coming on the back of an equally poor year," SMMT chief executive Mike Hawes said, referring to the impact of the chip shortage on sales which crimped a post-pandemic recovery.

The shortage of chips, used in everything from brake sensors to power steering to entertainment systems, has led automakers around the world to cut or suspend production, pushing up both new and used vehicle prices amid robust demand from consumers.

Hawes said the average vehicle requires between 1,500 and 3,000 semiconductor chips.

"We think demand is still there and demand is still strong," Hawes said. He added that the general view was that the chip shortage would undermine the market over the course of 2022 and this would "flow through to 2023".

Prior to the most recent coronavirus surge, the SMMT had forecast UK car sales of 1.96 million units in 2022, below the normal run rate of around 2.3 million units.

The SMMT said fully-electric BEVs accounted for 11.6% of sales in 2021 - more than the cumulative sales for 2016 to 2020. In December, BEVs made up roughly a quarter of UK car sales.

PHEVs, which have both a battery and a combustion engine, accounted for 8.9% of sales in 2021.

The UK government plans an effective ban on pure fossil-fuel models by 2030. But the SMMT said that more needs to be done to lower electric vehicle prices and to improve charging infrastructure, especially for on-street charging.

Across Europe and America, providing access to charging for people who park their cars on streets is a major challenge.

Car costs and charging concerns are the "biggest barriers to people considering this type of purchase," Hawes said. "We're not where we need to be."

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

   

Next In Tech News

Gig economy workers hit by high fuel prices and layoffs
‘If you’re watching this, I am dead’: YouTuber Technoblade dies of cancer
Hacker gang broke into Silicon Valley chipmaker AMD because of workers’�terrible passwords
Apple hikes Japan price of iPhone by nearly a fifth
Apple hikes iPhone and�iPad prices in Japan after yen tanks
EU ban on mobile roaming fees extended for 10 years
What is the right age for a kid to get a cellphone?
Opinion: The rise of tech unions shows workers reckoning with reality
Exclusive-Meta CEO Zuckerberg: engineering hiring target for 2022 reduced to around 6,000-7,000 -employee Q&A
Google to pay $90 million to settle legal fight with app developers

Others Also Read