UK Automakers Beset by Parts Issues in Worst June Since 1996

(Bloomberg) — Automakers had their worst June sales in decades in the UK as ongoing components shortages kept them from meeting demand.

New-car registrations declined by 24% to 140,958 vehicles, the lowest for the month since 1996, according to data from the Society of Motor Manufacturers and Traders. 

First-half shipments fell 12% to around 802,000 vehicles — the second-weakest showing in 30 years. The transition to batteries remained the only bright spot with sales of electric cars rising 56% in the period.

“The semiconductor shortage is stifling the new car market even more than last year’s lockdown,” SMMT Chief Executive Officer Mike Hawes said in a statement.

The group has repeatedly called for government support to help soften the blow of surging energy costs as carmakers try to transition to producing zero-emissions vehicles. The UK has seen auto production steadily decline over decades, with uncertainty over the future of its trading relationship with the European Union adding to the industry’s woes. 

READ: UK Auto Industry Calls for Government Help With Energy Costs

(Updates with final SMMT data starting in second paragraph.)

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