Britain's car industry suffers 'bleak' 2021 despite electric surge

RSS_DPA_Economy - London (PA Mediadpa) - Demand for new cars in the UK increased by just 1 per cent last year despite a surge in electric vehicles, new figures are expected to show. Around 1.65 million new cars were registered in 2021, compared with 1.63 million the previous year, the Society of Motor Manufacturers and Traders (SMMT) said.

This is a "bleak picture" and "not what we'd hoped for," SMMT chief executive Mike Hawes said. He blamed the sector's failure to mount a stronger recovery from 2020 - its worst year since 1992 - on the global shortage of semiconductors and the impact of the pandemic. Hawes said: "The first half of the year was in lockdown and, despite online click and collect, and the industry really stepping up to deliver that, it was still a tough start to the year." He said things "didn't improve significantly" in the latter six months "because of shortages in terms of supply." "We think demand is still there," he said.

The Vauxhall Corsa was expected to top the ranking of new car registrations in 2021, followed by the Tesla Model 3. Hawes described the increased popularity of electric cars as "the one very strong and bright spot on the horizon." It was the best year on record for plug-in cars, both battery electrics and plug-in hybrids, with 305,000 registered, accounting for around one in six of all new cars bought. More battery electric vehicles were registered last year than between 2016 and 2020 combined. Sales of new petrol and diesel cars and vans will be banned in the UK from 2030. dpa pa sdl