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Semiconductor shortages and the cost of living squeeze have hit UK car sales last month, despite more motorists turning to electric vehicles.
British new car registrations fell about 14% in March from a year earlier, despite the lifting of Covid-19 restrictions last month, preliminary industry data released this morning showed.
That would take registrations to below 250,000, a long way shy of the March average of 450,000 in the decade before the pandemic.
March is usually the biggest month for the auto sector, because the ‘new’ number plates come in. But the pressures on household finances will mean some families will put off getting a shiny new car, as rising food, fuel and energy costs eat into budgets.
Chip shortages continue to hit the sector too, as supply chains continue to struggle after two years of pandemic disruption. UK car production fell 41% year-on-year in February, data last month showed.
As well as struggling to source chips, manufacturers have also…
