Some good news and bad news with regards to the electric car industr"> Increase in electric car sales, but still chip shortages – Best Price Car Sales & Finance

Increase in electric car sales, but still chip shortages

11/01/2022 / Comments 0 / 13 / News 2022
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Some good news and bad news with regards to the electric car industry. For the year 2021, electric car sales had achieved more new car registrations than the previous five years combined, which is an astonishing achievement, considering the UK has been in the midst of a global pandemic. The bad news is that the UK market as a whole has failed to fully recover, again due to the Covid pandemic.

On the flip side of the coin, the industry is in dire need of further investment for more charging points to meet the huge increase in electric vehicles. 

The other problem the UK car industry faces is the ongoing  shortage of computer chips which has made car dealers across the country severely shortage of new cars to sell. Some more interesting facts are, more than a quarter of new cars are now electrified in some form or other, like a hybrid, plug-in hybrid, or fully battery-powered electric vehicles. Petrol/diesel cars still make up 72.5% of sales.

Dismal year

As a whole, 2021 was vastly considered a dismal year for the motor industry, with only 1.65m new cars registered. Compared to 2020, there was a small increase which was when full lockdowns and car dealership closures were enforced, causing car sales in the UK to plummet. 2020 was the second-worst sales figures recorded in the car sales industry for nearly thirty years.

Then to everyone’s surprise the lockdown continued to be ongoing which then caused shortages of computer chips and other vital parts used for new cars, such as engine management, emergency braking, entertainment systems, and satellite navigation. One modern car alone can use up to 3,000 semiconductors (computer chips).

Priorities

With the ongoing shortages of semiconductors, car manufacturers have resorted to allocating vital car supplies to their most profitable models, along with as many electric and hybrid cars which are being built in order for car manufacturers to meet emission targets.

The future of electric cars

Yes, as a whole the car industry is not in the best position at this time, but it won’t last forever. The signs are looking promising with electric car sales increasing by a whopping 75% in 2021 compared to 2020. This equates to 191,000 new electric car registrations in 2021, compared to 108,000 in 2020.

The electric Tesla Model 3 became the UK’s second best-selling car. All these figures are welcoming news for the UK government, however, the latest announcement of the reduction of the plug-in car grants could disrupt the ongoing trend but only time will tell. The government stated in December 2021 that the previous £2,500 grant to bring the cost of electric new cars down, would be cut to £1,500 for even less eligible makes and models.

Overcoming hurdles

There is another option if you can’t wait any longer for the arrival of your new car, this would mean investing your money into a good quality used car, preferably five years or newer.  More and more car buyers are resorting to taking ownership of used cars that are probably better valued for money, as they have come to a point that due to increased demands, most used cars are holding or increasing in value. 

Even better is to also shop around for electric used or used hybrid cars, which will get you prepared for the ban of fossil fuel vehicles coming to the UK in 2030. Best Price Car Sales, based in Southampton offer a door-to-door, free nationwide delivery service, as well as a part-exchange service to help reduce monthly payments if you decide to use our one-stop-shop used car dealership, car finance broker, and nationwide delivery service.

All of Best Price Cars stock come with full warranties, HPI check, and the best incentives to entice you into joining our long list of satisfied customers

To find out more about our current deals and offers on all of our quality used cars, call us now on 02380 225 666 or click here to get instant car finance approval today.

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