Carmakers are now more pessimistic about new car sales for 2021 than they were at the beginning of the year.
The Society of Motor Manufacturers and Traders (SMMT) said in January that it expected annual sales of 1.89 million vehicles but has now revised this down to 1.72 million units, a fall of 9%.
It said while represents a 4.5% rise on 2021, it highlights the effect the semiconductor shortage is still having on supply as well as anticipated impacts from rising living costs.
The outlook for plug-in vehicles also was downgraded with the forecast for BEV registrations now at 289,000 units, down from 307,000; and PHEVs at 144,000, down from 163,000.
HEVs also saw their outlook fall from 198,000 to 193,000. This means that plug-in electric cars are now expected to account for a quarter of all registrations (25.2%) during the year, with BEVs alone comprising around one in six new cars on the road.2
Mike Hawes, SMMT Chief Executive, said, “The worldwide semiconductor shortage continues to drag down the market, with global geopolitical issues threatening to undermine both supply and demand in the coming months.