New car market facing 'tough year' despite sales increase - global supply issues continue
| Published date | 06 December 2021 |
| Publication title | Express, The/The Express on Sunday: Web Edition Articles (London, England) |
Registration figures for petrol and diesel vehicles also continued to decline, with 50,073 new petrol cars registered, a 10.4 percent decrease compared to last November.
Diesel vehicles also took a massive hit with a 62 percent decrease in registrations, with just under 6,000 new vehicles.
Alex Buttle, co-founder of used car marketplace Motorway.co.uk, commented on the car registration numbers, saying the used car market could see a boost.
He said: “November new car sales were never likely to deviate from the trend we’ve seen throughout 2021, although EV and plug-in sales continue to be a huge positive amongst all the gloom.
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“Lack of supply is still a major bottleneck for the new car industry, with global supply chain issues persisting and microchip shortages unresolved.
“With manufacturer wait times often over 12 months, many buyers are simply not willing to wait that long for their purchase to arrive. The used car market will continue to be the beneficiary for as long as this situation continues.
“We are seeing unprecedented demand from dealers wanting to buy quality used cars on Motorway’s marketplace. Record breaking prices are still being achieved by customers selling their cars, with average prices up 22 percent year on year in November.
"Despite buoyant prices, the used car market still offers great value for buyers, who are willing to pay a premium for the immediacy of being able to purchase a car and pick it up the same day, or have it delivered to their home.
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“Looking ahead to next year, the new car market is facing another tough year with the COVID-19 backdrop still uncertain.
“EV sales are continuing to be a ray of light for the new car industry, with sales surging as people switch to electric in light of the fuel crisis, ULEZ, environmental concerns and the 2030 ban on new fossil fuel car sales.
“November saw electric cars make up almost a fifth of all sales, the highest monthly proportion ever, suggesting that people are embracing the idea of early switching.
“With further Government investment into infrastructure supporting EVs on the cards, these numbers will continue to rise in 2022."
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