The global semiconductor chip shortage will continue to hurt car sales throughout this year and into 2023 after making a serious dent in vehicle supply in 2021.
The Society of Motor Manufacturers and Traders (SMMT) in a statement said around one in six new cars sold in Britain in 2021 was either battery-electric (BEV) or a plug-in hybrid (PHEV) and overall new car registrations inches to 1.65 million units versus 1.63 million in 2020.
The shortage of chips, used in everything from brake sensors to power steering to entertainment systems, has led automakers around the world to cut or suspend production, pushing up both new and used vehicle prices amid robust demand from consumers.
An average vehicle requires between 1,500 and 3,000 semiconductor chips.
The SMMT said fully-electric BEVs accounted for 11.6% of sales in Europe last year- more than the cumulative sales for 2016 to 2020. In December, BEVs made up roughly a quarter of the total car sales.
PHEVs, which have both a battery and a combustion engine, accounted for 8.9% of sales in 2021.
Like many European countries, the UK government plans an effective ban on pure fossil-fuel models by 2030. But the SMMT said that more needs to be done to lower electric vehicle prices and to improve charging infrastructure, especially for on-street charging.