scrap local news new car sales down 2021 ved tax battery chip shortages ev vehicles

New Car Sales Down: A Steady Trend To The Future

UK New Car Sales Fall As Used Car Sales & Scrap Prices On The Rise

With new car sales down from 40% since January, it is estimated that the automotive sector has suffered from a loss of £20 billionMany environmental factors, social & economic changes are at play, how we live largely influencing the future of our current cars.

As such, scrap metal prices have risen as with demand from rare metal components. This is big news within the scrap industry as with the recent decline of new car sales, scrap local are on hand to provide insight into how chip shortages rising scrap metal prices and the increasing sale of used and electric vehicles are affecting new diesel and petrol cars. 

Vehicle Chip Shortages To Drive Up Scrap Prices?

A rising concern that’s influenced low car sales in the UK is battery chip shortages. 

  • Semiconductor chips are in scarce supply with key electronic industries looking to suffer for years to come. 
  • Car companies started to notice a shortage in battery chip supply following increased production when the global lockdown was eased in 2020. 
  • New vehicles use more chips that manage car features such as ABS, lights, safety, windows, airbags & infotainment systems.

As chip shortages grow globally, it’s estimated that once again new car sales will be halted by the growing market share of electric vehicles and how battery chips are required as this new innovative, sustainable sector grows.

Additional issues relating to car chip shortages also include rising shipping costs, with car manufacturers struggling post-lockdown. With a push on rare earth metals needed for the production of new chips, shortages for copper & precious metals have led to an increase in scrap metal prices

The amount of chips a modern car needs is rising sharply. The new Nissan Qashqai has 50% more sensors than the outgoing car

Other Factors That Influence Low New Car Sales

UK petrol & diesel cars have slumped to their lowest in nearly 20 years despite a surge in EV sales.

With a decline in growth in the sector following the initial first lockdown, sales & production of diesel cars have been stalled following the closure of showrooms in England because of global lockdown, with a push on online car sales and social distancing in factories to assist in the recovery of the new car sales.

These are just a few other factors that have influenced low, new car sales & their rising pattern as we shift into a new automotive age.  

Clean Air Zones & Low Emissions Targets influencing Scrap Car Sales

The Rise of Clean Air Zones across major cities such as London, Manchester & Birmingham has affected the car-buying habits of many motorists across the UK. 

In short, clean air zones and low emissions targets have led to many petrol & diesel cars, both used & new car sales to be badly affected by policies that penalise highly polluting vehicles.

Many motorists do not want to pay penalties via inner-city congestion charges, and would much rather follow government guidelines that look towards more environmentally sustainable options, as with a growing contender to petrol and diesel cars; The humble electric vehicle. 

Many areas have followed the success of the ULEZ grant scrappage scheme in London, other areas have followed suit, as consumers start to receive higher scrap value for their old vehicles when they decide to upgrade to electric vehicles.

The Rise Of EV Cars

Despite the fall of petrol and diesel cars, the sales of Electic vehicles had trebled since 2020 with 110,00 vehicles accounting for 6.6% of total car sales. 

When taking into account plug-in hybrids, which still use a combustion engine alongside rechargeable lithium battery packs, the market share of plug-in hybrid electric cars rose by over 10%!

With the industry being accelerated by overseas infrastructure development, the rise of electric cars looks to grow more rapidly as the government are set to ban the sale of diesel and petrol cars by 2030.

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Changes To VED Tax Rates

Changes to VED (vehicle exercise duty tax rates), the UK aims to achieve a net-zero target by 2040 by effectively banning the sale of new petrol and diesel cars & vans. Phasing out petrol & diesel engines, the UK Is expected to achieve their goal of a zero-carbon economy. 

By increasing VED tax rates, which measure the rate of carbon emissions produced per KM, increases to tax alongside fuel duty costs are looking to influence road users to make the switch to a greener & more sustainable vehicles. 

The introduction of clean air zones across key cities & regions such as Manchester & London will only reduce the sale of new petrol & diesel car sales. 

 Find out more about changes to VED tax rates with our complete guide. 

With growing battery chip shortages & an increase in electric and plug-in vehicles, it’s no wonder that the sale of petrol & diesel cars has been massively reduced since 2019.

With a major push on better sustainable alternatives following suit of Clean air zones & low emission targets by many key areas across the UK, many motorists are becoming more aware of the detrimental impacts of highly polluting petrol and diesel, euro 4, 5 & 6 vehicles.

It’s estimated that more motorists are showing commitment by switching to electric vehicles and this consumer habit is expected to grow even more. 

Battery chip shortages are estimated to dramatically affect the prices of new car sales, as with manufacturers struggling to meet demand, the problematic issue & financial complication of poor supply chain management will lead to a price increase for the motorist. 

With rising issues VED tax rates & Low Emissions / Clean Air Zone Initiatives, it seems that the only viable option for those who want to find a cost-effective solution is to make the switch to more sustainable alternatives, such as an Electric or plug-in hybrid vehicle. 

With growing battery chip shortages & an increase in electric and plug-in vehicles,  it’s no wonder that the sale of petrol & diesel cars is massively reduced since 2019.

With a major push on better sustainable alternatives following suit of Clean air zones & low emission targets by many key areas across the UK, many motorists are becoming more aware of the detrimental impacts of highly polluting petrol and diesel, euro 4, 5 & 6 vehicles.

If looking to remove your car from your home or business, and would like to make a positive impact with more sustainable & green alternatives, then looking to scrap your car for salvage may be a good option.

Our network of car breakers who buy scrap cars near you is on hand to assist in delivering a convenient, effective & practical car removal service, paying the best scrap car prices for your old vehicle whilst providing added peace of mind with our quick & prompt collection & payment. 

Scrap Your Car Here!

With VED Tax rises & Fuel duty costs, car sales have decreased as motorists do not want to pay the difference.

The future for the automotive industry looks to address the need for going carbon neutral & with the relevant government policies, such as clean air zones & low emission targets, this will impact buying behaviours for years to come. 

 

 

 

 

Scrap Local

Scrap Local

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