New car registrations in the UK fell to their lowest level in three decades in 2022, according to new figures from the Society of Motor Manufacturers and Traders (SMMT). Only 1.61 million new cars were registered last year, the lowest since 1992, as ongoing semiconductor shortages disrupted production lines.
Despite the overall decline, demand for electric vehicles (EVs) continued to grow, with their market share rising from 11.6% to 16.6%. Sales of fully electric cars increased from 190,700 to 267,000 units. In December, EVs accounted for nearly a third of new car sales, though this was boosted by Tesla shipments.
The SMMT warned that charging infrastructure is not being built quickly enough to meet growing demand. To reach the government's target of 300,000 public charging points by 2030, around 100 new points need to be installed daily, but current rates are only about 23 per day. The SMMT also expressed concerns about the upcoming Zero Emission Vehicle mandate, which requires manufacturers to sell a certain proportion of EVs from 2024, but detailed rules have yet to be published.
The Nissan Qashqai was the UK's best-selling car in 2022, becoming the first British-built model to top the annual sales charts in 24 years. The model was designed in Paddington, engineered in Cranfield, and built in Sunderland.
Looking ahead, the SMMT forecasts sales of roughly 1.8 million in 2023, despite fears of recession. However, affordability remains a key challenge for EVs, with the cost of living and high electricity prices potentially dampening demand. From April 2025, electric cars will also lose their exemption from vehicle excise duty.
