UK new car market gets ‘electrified boost’ in January

London - The UK automotive sector recorded a positive start to 2022 as 115,087 new cars were registered, according to the figures published by the Society of Motor Manufacturers and Traders (SMMT) 4 Feb. 

Registrations were up by more than a quarter – 27.5% – on January 2021, when lockdown restrictions kept car showrooms shut.

However, with chip shortages continuing to impact supply, SMMT said the market remained “well below pre-pandemic levels”, just under 23% lower than January 2020.

The association linked the January growth to private buyers, with the segment registering 62,300 new cars, up 64.1%, year on year – and just -5.6% off pre-pandemic levels. Large fleet registrations, meanwhile, remained broadly flat at 50,817 units. 

Electrified vehicles continued to bolster the growth, with battery electric (BEV), plug-in hybrid (PHEV) and hybrid (HEV) cars accounting for 71.5% of the uplift in registrations. 

Plug-in vehicles enjoyed another bumper month, with 14,433 BEVs and 9,047 PHEVs registered, equal to some 20.4% of the market. With 13,492 HEVs registered, almost one in three new cars joining the UK's roads in January was electrified.

According to SMMT, the latest market outlook forecasts registrations of BEVs and PHEVs to grow by 61% and 42% respectively in 2022, meaning that, by the end of the year, almost one in four new cars would come with a plug.

Overall, total new car registrations are expected to rise 15.2% on 2021, to 1.897 million units. 

This represents a downward revision from last October’s outlook of 1.96 million, as “the ongoing semiconductor shortage, increasing costs of living and rising interest rates are expected to dampen some demand in 2022.” 

SMMT noted that the 2022 market of 1.897 million units would still be down 17.9% on the pre-pandemic 2019, but the recovery is “expected to continue into 2023.”

By 2023, the association said, the market is projected to climb above two million units for the first time since 2019.

“Given the lockdown-impacted January 2021, this month’s figures were always going to be an improvement, but it is still reassuring to see a strengthening market,” said Mike Hawes, SMMT chief executive.