New Vehicle Registrations Rise For The First Time In Five Months
The latest figures from the government have revealed that new vehicle registrations rose by 1.2% in August 2022, the first time the figures have risen in five months.
It wasn’t all good news, though, with larger fleet registrations falling by 1.2% in comparison, reflecting the difficulty that some fleets are still experiencing in procuring new vehicles.
The overall figures include private registrations, which rose by 3.2%.
It presents a positive picture for the future of the UK’s new vehicle sector after a difficult couple of years with component shortages, the pandemic, and Brexit all contributing to a shortage in the availability of new vehicles.
What Does It Mean For The Future Of New Vehicle Availability?
While it’s too early to read anything into the long-term resolutions of supply chain issues, it is a step in the right direction for the UK vehicle market.
The reality is that the shortage has had a significant knock-on effect on the procurement of new vehicles that has seen many fleets turn to the second-hand or nearly-new market instead.
Given the fact that replacement cycles are usually fixed in place, the disruption has meant that many fleet owners have had to deal with significant lead times for new vehicles, which manufacturers are still catching up with.
Business registrations with fewer than 25 vehicles were actually the sector with the highest level of growth in August, rising 26.6%.
A significant portion of the new vehicles registered were battery electric vehicles as drivers and fleets turn to electric vehicles ahead of the phasing out of internal combustion engine vehicles in 2030.
It’s worth noting that despite growth in August, the year-on-year comparisons show that the overall registrations were still the lowest since 2013, excluding 2021 which saw record lows.
It’s a similar story across the board when it comes to vehicle manufacturing, which is still playing catch-up to the shortages and supply chain issues over the last couple of years.
What Is The Situation For Fleets?
Experts believe that September will be the true barometer of the situation.
September is traditionally one of the biggest months for new vehicle purchases and registration, so the hope is that a significant uptick over the next few weeks could show steady signs of recovery and point towards a more regular level of vehicle availability.
Car industry experts have stated that the UK needs to install ‘millions’ more charging points for electric vehicles, though.
Under current plans, the UK is set to have 12 gigawatt hours (GWh) of battery production by 2025, which lags behind Germany’s current target of 164GWh in the same timeframe.
As of now, the UK has 23,800 public access charging points, including 4,450 rapid devices, and the rollout of a £1.3 billion investment scheme has been announced.
Have you recently purchased new vehicles for your fleet? Or have you found supply chain issues? Considering making the switch to electric? Let us know in the comments below.
