Supply constraints as a result of the semiconductor shortage are probably the cause of a decline in fleet and business registrations by almost a quarter (23.7%) in November, compared to the same month last year.
According to the figures shared by the Society of Motor Manufacturers and Traders (SMMT), 53,085 company cars were registered to fleet and business last month, 16,516 units fewer than November 2020.
However, year-to-date registration figures for fleet and business cars are just 0.7% down, 792,687 units versus 798,068.
Overall, new car registrations grew 1.7% in November, bringing an end to four months of consecutive decline, with 115,706 units registered compared to the same period last year. However, compared to the pre-pandemic average, the market remains down significantly, with 31.3% fewer vehicles registered during the month.
According to Mike Hawes, chief executive of the SMMT, “What looks like a positive performance belies the underlying weakness of the market. Demand is there, with a slew of new, increasingly electrified, models launched but the global shortage of semiconductors continues to bedevil production and therefore new car registrations. The industry is working flat out to overcome these issues and fulfil orders, but disruption is likely to last into next year, compounding the need for customers to place orders early.”
Fleet operators and company car drivers are facing delays of more than one year for certain new car and van models, while others are being delivered with missing features, as the global semiconductor shortage worsens.
Private demand over the course of the month saw an increase of 41.7%, taking the private market share to an unusual high of 54.1%, although the growth reflects the impact that the November 2020 lockdown had on consumer purchases, as well as the supply-constrained nature of the current market as the shortage of semi-conductors undermines both production and registrations of new vehicles.
Mini and specialist sports vehicle segments both saw significant increases of 139.9% and 66.8% respectively, despite representing relatively low volume segments and therefore subject to volatility.
The most popular categories remain the lower medium (28.8%), supermini (28.6%) and dual purpose (27.5%) segments.
