LSE: 747.80 GBP -1.80 (-0.24%)
Menu
Close
06 December 21 Press releases

New car registrations | November 2021

“The slight uptick in retail sales last month is not a sign that the new car supply issues are beginning to ease; the majority of November’s registrations will have been pre-ordered months ago. In reality, the global shortage of semi-conductors is still being keenly felt at the forecourts, holding back sales to a level well below the very strong underlying demand we continue to see. This is not only reflected in the 123% year-on-year increase in new car enquiries sent to retailers on Auto Trader last month, but also the fact that many manufacturers and retailers are reporting record pre-orders. Remarkably, some have already exceeded their Q1 allocation of production. 

“With the market unable to meet demand, many would be new car buyers are turning to ‘nearly new’ alternatives, those aged below 12 months old. However, as a result of the 1.5 million ‘lost’ new car sales since the start of the pandemic, they remain in very short supply, and as such, prices are rocketing. So much so, more than a quarter of those currently available are more expensive than their brand-new equivalents. It highlights the very strong used car profit opportunities currently available for retailers.

“Longer term, there’s no sign that these unique market dynamics – very high consumer demand and low supply – will ease anytime soon. Supply in new cars will remain for at least the first half of 2022, and with the economy set to grow at quite a pace again next year, we can expect very strong consumer demand to continue.

“Electric vehicles (EV) have proven again to be a bright spot. Fuel anxiety, greater environmental awareness, and the ‘cool factor’ are all helping to drive sales, albeit on a relative scale. However, it’s important we put this growth into context - the progress is positive, but we’re behind the required pace to reach the Government’s 2030 targets.

“With new EVs costing over a third more to buy than a petrol or diesel, the ‘green premium’ means current growth is being fuelled by only the most affluent. There are evident limits to the number of car buyers who can afford today’s EVs. Unless the Government significantly changes its approach to financial incentives - three times smaller than those available in Europe – to make EVs affordable for the average household, its green ambitions will run out of charge long before 2030.”

Share:
Up next
Auto Trader data to power Office for National Statistics' official measures of inflation
Read More
Retailers embracing digital are reporting more sales, more efficiency and more satisfied customers
Read More
Auto Trader is first FTSE 100 to achieve Gold Carbon Literacy status
Read More

Stay up to date

Follow us on our social channels to keep up with the latest news, insights and company developments.

 

If you would like to be added to our News & views mailing list, or have any media-related enquiries, please contact our press team:

Auto Trader UK

Auto Trader Insight

Auto Trader Life

Other Group sites

Looking to join the team?

Careers

Looking to buy or sell a vehicle?

Consumers

Keep in touch

Sign up to our email alerts service:

RNS alerts

Join our news & views mailing list
or submit media-related enquiries:

Contact our press team
  • @2024 Auto Trader Group plc. Registered in England with company number: 09439967.