American EVs surge to top spots as supply chain shortages cause a dramatic downturn in new car registrations
New Model Y arrived in the UK in February
The Tesla Model Y was the best-selling car in the UK last month, followed closely by its Tesla Model 3 sibling, amid a backdrop of declining registrations caused by ongoing supply chain shortages.
Tesla registered 6464 examples of the Model Y and 6457 Model 3s, both some way ahead of the Vauxhall Corsa in third place, with 5515 units, and the Nissan Qashqai in fourth with 5401. Importantly, Tesla’s monthly registrations tend to surge following a shipment of UK cars, as the firm bulk-registers imported cars at the port.
The figures reflect the ongoing shake-up of the UK’s traditional best-sellers list – with the once best-selling Ford Fiesta coming in at number 10 with 3890, for example – as supply chain shortages continue to restrict output for many of the world’s largest car makers.
As a result, UK new car registrations dipped 14.3% last month compared to the same period last year, with just 243,479 cars registered overall. March is traditionally a bumper month for car sales as the new-year numberplate is rolled out – with around 20% of the year’s registrations taking place.
The Society of Motor Manufacturers and Traders (SMMT) reports that last month was the weakest March since 1998, before the UK switched to a ‘two-plate’ system (whereby the numberplate changes in March and September).
The SMMT cites the ongoing semiconductor shortage as a primary cause of the downturn, but also notes that uncertainty surrounding the continuing Russian invasion of Ukraine, rising energy and material costs and a “squeeze on household incomes” as factors inhibiting both supply and demand for new cars.
It said: “The result is massively disappointing for the sector and underscores the long-term impact the pandemic is wreaking on the industry.
“In spite of the rollback of pandemic restrictions, which limited the industry to ‘click and collect’ in the first part of 2021, overall Q1 registrations for 2022 were down -1.9%.”
Because dealerships were closed to customers in March 2021 in line with wider social distancing restrictions, the same month in 2022 actually saw an 8.2% uptick in private registrations, but that was tempered by a massive 34.4% decline in demand from fleet buyers.
In terms of demand for powertrain types, it was another month of growth for pure-electric cars, some 39,315 examples of which left dealerships (a 78.7% year-on-year increase). Pure-EVs now have a 16.1% market share in the UK, with the SMMT noting that the amount sold in March 2022 outnumbers the tally for the whole of 2019.
The SMMT notes: “With grants for BEVs ongoing until at least next March, however, interest rates still low and electric cars benefiting from lower running costs, there are significant benefits for drivers who can order new vehicles now.”
Meanwhile, demand for plug-in hybrid cars dropped by 7.5%, pure-petrol cars by 25.6% and – in reflection of an ongoing shift away from the fuel – diesel car registrations plummeted by 55.2%.
SMMT chief executive Mike Hawes called the March decline “deeply disappointing” and said it “lays bare the challenges ahead”.
He added: “While demand remains robust, this decline illustrates the severity of the global semiconductor shortage, as manufacturers strive to deliver the latest, lowest emission vehicles to eagerly awaiting customers.
“Placing orders now will be beneficial for those looking to take advantage of incentives and lower running costs for electric vehicles, especially as the Ukraine crisis could affect supply still further.
“With increasing household and business costs, government must do all it can to support consumers so that the growth of electric vehicles can be sustained and the UK’s ambitious net zero timetable delivered.”
Keyword: Tesla Model Y and Model 3 top sales chart as registrations plummet