Tesla tops June 2021 new car sales – but supply issues squeeze recovery

A global shortage of semiconductor chips is hurting the post-Covid recovery in new car sales as the market remains behind the 10-year average.

New car showroom

The Tesla Model 3 ended another quarter topping the UK monthly new car registrations. However, industry analysts are warning the global shortage of semiconductor chips risks squeezing the post-coronavirus recovery.

A total of 186,128 new cars were registered in June 2021, up 28 percent on the Covid-hit 2020 market.

However, this is still 16.4 percent behind the 10-year June average, while year-to-date sales are a whopping 26.8 percent below the decade-long average.

The Society of Motor Manufacturers and Traders says this is due to the ongoing global semiconductor shortage, which is acting as a limiting factor on supply.

Indeed, second-quarter new car registrations actually fell short of industry expectations due to dwindling new car supplies.

Mike Hawes, SMMT chief executive, said: “With the final phases of the UK’s vaccine rollout well underway and confidence increasing, the automotive sector is now battling against a ‘long Covid’ of vehicle supply challenges.

“The semiconductor shortages arising from Covid-constrained output globally are affecting vehicle production, disrupting supply on certain models and restricting the automotive recovery.”

Embracing EV

UK new car buyers continue to embrace electric cars. A combination of battery electric vehicles and plug-in hybrids accounted for 17.2 percent of new car registrations – with pure electric cars alone compromising more than one in 10 sales.

Pure diesel cars took a paltry 8.1 percent market share; add in mild hybrid diesels, and it increases to 14.2 percent – still behind the combination of BEVs and PHEVs.

Every vehicle sector apart from executive cars and MPVs grew in June. The SMMT says the strongest growth was in the city car segment.

Superminis made up 34.1 percent of all new car registrations, followed by family hatchbacks and SUVs.

June 2021 best-selling new cars

1: Tesla Model 3

2: Ford Fiesta

3: Volkswagen Golf

4: Mercedes-Benz A-Class

5: Ford Puma

6: Nissan Qashqai

7: Kia Sportage

8: Volkswagen Polo

9: BMW 3 Series

10: Toyota Yaris

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Richard Aucock
Richard Aucockhttps://www.richardaucock.co.uk/
Richard is director at Motoring Research. He has been with us since 2001, and has been a motoring journalist even longer. He won the IMCO Motoring Writer of the Future Award in 1996 and the acclaimed Sir William Lyons Award in 1998. Both awards are run by the Guild of Motoring Writers and Richard is currently vice chair of the world's largest organisation for automotive media professionals. Richard is also a juror and Steering Committee director for World Car Awards and the UK juror for the AUTOBEST awards.

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