UK car industry body says new car sales in July fell 9%, dampening outlook for 2022

New cars are pictured at a car dealership, as Britain’s auto industry body releases monthly new car sales figures, in Cheshire, Britain October 5, 2020 REUTERS/Jason Cairnduff

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Aug 4 (Reuters) – New car registrations in Britain fell around 9% in July from a year earlier as continued component supply shortages due to COVID-19 restrictions in China and the crisis in Ukraine has affected shipments, according to industry data released Thursday.

The Society of Motor Manufacturers and Traders (SMMT) said July registrations fell to 112,162 units, mostly due to a decline in large fleet registrations, while consumer registrations remained flat.

The market is unlikely to recover from the significant losses suffered by chip shortages and production disruptions, although the sector expects the second half to improve as supply problems begin to subside, he said.

It lowered the 2022 outlook for new car registrations to 1.6 million, from a previous forecast of 1.72 million.

The SMMT said adoption of battery electric vehicles (BEVs) rose nearly 10% to 12,243 units, gaining a 10.9% market share in July, but that was the growth weakest monthly since the pandemic.

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Reporting by Radhika Anilkumar and Muhammed Husain in Bengaluru; Editing by Krishna Chandra Eluri and Rashmi Aich

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