New car sales plunge 25% to 1991-level low

November 4, 2021

New car registrations in October 2021 fell to the lowest level since the 1991 recession, with sales plunging almost 25 percent.

Just over 106,000 new cars left retailer showrooms as the industry continues to be hit hard by the global semiconductor shortage.

It is the fourth consecutive month of new car sales decline and continues the stall in a post-pandemic recovery.

Electric cars continue to be a good news story though, with October sales of 16,155 cars equalling a 15.2 percent market share.

Plug-in hybrids added another 7.9 percent for electrified car take-up.

Indeed, the switch to electrified driving has been so swift, the Society of Motor Manufacturers and Traders (SMMT) is now predicting electric cars and plug-ins will overtake diesel car sales as soon as next year.

Overall plug-in sales for 2021 will exceed the decade-long total for the whole of 2010 to 2019 combined.

‘Supply constraints’

“The current performance reflects the challenging supply constraints,” said SMMT chief executive Mike Hawes, “with the industry battling against semiconductor shortages and increasingly strong economic headwinds as inflation rises, taxes increase and consumer confidence has weakened.

“Electrified vehicles, however, continue to buck the trend, with almost one in six new cars registered this year capable of zero-emission motoring, growth that is fundamental to the UK’s ability to hit its net zero targets.”

Mr Hawes added that 2022 is looking brighter, and predicts the switch over to electric cars will continue apace – but only if government support such as incentives remains in place.

“Continuation of this transition will depend on the preservation of incentives that overcome the affordability barrier, and the ability of the public and private sectors to increase public on-street charging to allay EV driver concerns.”

October’s chart-toppers

In a sales chart surprise, the Volkswagen Polo emerged as the best-selling car in October 2021, just pipping the Mini.

Nissan was third with the Qashqai, again just ahead of the Ford Focus.

While the Vauxhall Corsa was down in fifth place for October, it continues to be the UK’s best-selling car for 2021 overall, by a clear margin over the Volkswagen Golf.

Other October successes include the Kia Niro in sixth, the Volvo XC40 in seventh and Hyundai taking a top-10 spot with the distinctively styled new Tucson.