UK new car sales see weakest March since 1998

Significant targeted traffic as observed on the M3 motorway heading to the English coastline, close to Southampton, Britain, August 7, 2020. REUTERS/Toby Melville

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April 5 (Reuters) – British new auto registrations fell 14% to history the weakest March since 1998 as semiconductor shortages continued to strike motor vehicle materials, though demand from customers for battery electric powered motor vehicles touched an all-time high, field knowledge showed on Tuesday.

Soaring inflation in Britain, built worse by rising fuel costs, could also hit desire for new autos, though the Russia-Ukraine conflict could additional pressure automotive offer chains, the Culture of Motor Manufacturers and Traders (SMMT) claimed.

“Specified (that) all-around 20% of complete once-a-year registrations are generally recorded in March, the result is massively disappointing for the sector and underscores the extensive-term impact the pandemic is wreaking on the market,” the SMMT said in a statement.

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A scarcity of chips, arising from offer problems in the course of the pandemic and soaring demand from customers from purchaser electronics, has severely hit the automobile marketplace, with lacking vital pieces hindering the creation of new automobiles.

Battery electrical autos (EVs), having said that, enjoyed their best-at any time month, with registrations in March surpassing all those for the full of 2019.

The SMMT explained 39,315 new zero-emission cars still left dealerships previous month, up 79% from a 12 months before and accounting for nearly a sixth of the auto market place.

“There was already massive progress in this phase and, if something, the demand from customers for EVs is now even stronger as costs at the pumps increase on the again of the Ukraine crisis,” mentioned Ian Plummer, director at on the net car or truck market Vehicle Trader.

The slide in Uk new motor vehicle sales, to 243,479 units in March, also impacted to start with-quarter numbers, with overall registrations for the initially a few months of 2022 slipping 1.9%.

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Reporting by Yadarisa Shabong in Bengaluru Enhancing by Anil D’Silva and Uttaresh.V

Our Requirements: The Thomson Reuters Believe in Principles.

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