New car sales up 27.5% compared to lockdown-hit 2021

February 4, 2022

New car registrations recovered in January 2022, with a 27.5 percent sales lift over a lockdown-affected 2021.

More than 115,000 new cars hit the roads – and one in five was a pure electric car, as Brits embrace EVs in ever-growing numbers.

Electrified vehicles – also including hybrids and plug-in hybrids – accounted for 71.5 percent of the January improvement.

Add EVs, hybrids and plug-in hybrids together and, last month, nearly one in three new cars was electrified. Significantly, pure electric cars outsold both hybrids and plug-in hybrids.

The diesel slump continued, with barely one in 10 new cars registered last month being either diesel or mild hybrid diesel.

Trade body the Society of Motor Manufacturers and Traders (SMMT) says the January increase came despite the ongoing semiconductor shortage.

This, it adds, is why last month was still 22.9 percent down on the pre-pandemic January 2020 level.

‘Reasonable start’

Mike Hawes, SMMT chief executive, said: “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.

“Once again, it is electrified vehicles that are driving the growth, despite the ongoing headwinds of chip shortages, rising inflation and the cost-of-living squeeze.

“2022 is off to a reasonable start, and with around 50 new electrified models due for release this year, customers will have an ever greater choice, which can only be good for our shared environmental ambitions.”

The SMMT is now predicting total 2022 new car sales of 1.897 million units. This is a downward revision on its October 2021 forecast, due to the semiconductor shortage.

The increased cost of living and interest rate rises are also expected to dampen demand in 2022.

However, a recovery is forecast for 2023, where the new car market is expected to ease over the two million mark for the first time since 2019.

Kia is number one

The outgoing Kia Sportage was the surprise best-selling new car in January 2021, as the firm clears the decks for the launch of the all-new model.

It was a Kia double on the podium, as the Niro took third place behind the Ford Puma.

Kia as a brand was the UK’s top-seller too, taking a 9.1 percent share of the overall market.

2021’s best-selling car overall, the Vauxhall Corsa, slipped down to fifth place – but a perennial UK best-seller, the Ford Fiesta, remains notable for its absence from the top 10 chart.

The British-built Toyota Corolla made a surprise appearance in the best-sellers table, taking 10th place.