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September 05, 2022 08:34 AM

UK new-car sales rise 1% in August on EV demand

UK new-car sales rise 1.2 percent in August as a 35 percent jump in EV demand provided a boost.

Reuters
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    The UK's new-car registrations rose 1.2 percent in August, ending five-straight months of declines, as growth was largely boosted by demand for full-electric vehicles, according to industry data.

    The Society of Motor Manufacturers and Traders (SMMT) said in a statement on Monday that registrations in August, which is considered the second quietest month of the year, were up at 68,858 units from 68,033 units a year earlier, as many buyers choose to wait for a new numberplate in September.

    "Spiraling energy costs and inflation on top of sustained supply chain challenges are piling even more pressure on the automotive industry's post-pandemic recovery, and we urgently need the new Prime Minister to tackle these challenges and restore confidence and sustainable growth," SMMT CEO Mike Hawes said in the statement.

    The auto market has been hit by the cost-of-living squeeze in Britain and the impact of persisting chip shortages across the globe.

    "With September traditionally a bumper time for new car uptake, next month will be the true barometer of industry recovery," Hawes added.

    EV sales showed a 35 percent increase in volumes and a 14.5 percent market share.

    However, SMMT warned that the growth in the segment is slowing, with a year-to-date increase of 49 percent, whereas at the end of first-quarter, EV registrations had risen 102 percent.

    Through August, total registrations fell 11 percent to 983,099. Demand was down nearly a third from pre-pandemic 2019 levels.

    SMMT
    SMMT
    EUROPE BY THE NUMBERS NEWSLETTER: Sign up for our monthly newsletter delivering data and commentary on European sales, including sales by model, top models overall, and top models in major markets.
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        • Capgemini: Succeeding with the automated driving journey through AI
        • Capgemini: The circular economy is spurring new thinking on EV batteries
        • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
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