New car sales in Britain fall to the lowest level in two decades

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New car sales in the UK have fallen to their lowest level in more than two decades, as the global semiconductor shortage continues, according to the latest figures from the Association of Automobile Manufacturers and Traders. Recent data from the Trade Authority for Industry indicated that car registrations fell by about 35% in September, which is usually the second busiest month of the year in the industry; Because of the second annual change of the number plate.

Dealers reported registering more than 215,000 new cars last month, down 34% from September last year, when sales were hit hard; Due to the closure imposed to control the outbreak of the epidemic, this number is the lowest since 1999.

Like other sectors, the auto industry, which was already facing uncertainty over Brexit, has been hit hard by the pandemic shutdown and economic uncertainty, the British Financial Times reports.

Industry continued to struggle to meet pent-up demand as the economy reopened; Because of the global shortage of computer chips.

Mike Howes, CEO of the Association of Automobile Manufacturers and Dealers, says that the September data is significantly disappointing, as well as further evidence of the continuing impact of the epidemic on the sector, despite the strong demand for new cars during the summer, there are three consecutive months affected by the outage displayed; Because of the low availability of semiconductors, especially from Asia.

Also, Richard Pepperdy, head of automotive at KPMG in the UK, said the figures were likely to “disappoint the month of license plate change that typically sees a marked increase in new car registrations”.

The Melrose Industries group also warned of continued supply chain problems, as these problems would harm its business in the automotive and powder industries. Customers canceled orders at 25 times the rate seen earlier this year.

Simon Beckham, CEO of Melrose Industries, said: “The tightening of the semiconductor supply in the auto industry is frustrating and difficult to plan, but despite its impact on the current level of trading, it does not affect the long-term value, especially since the liquidity is heavily controlled. Good and low debt.

The article New car sales in Britain fell to the lowest level in two decades was written in the Stock Exchange.