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UK electric car sales soar_ although chip shortage remains

 Published: 00:44, 6 January 2022

UK electric car sales soar_ although chip shortage remains

Sales of electric vehicles in the United Kingdom soared last year_ but the market as a whole failed to recover from the Covid pandemic.

More electric cars were registered in 2021 than in the previous five years combined_ according to the Society of Motor Manufacturers and Traders (SMMT).

Yet the industry body said much more investment is needed in charging infrastructure.

Meanwhile an acute shortage of computer chips left dealers struggling to get hold of many new conventional models.

Overall_ 2021 was another dismal year for the motor industry. Preliminary figures from the SMMT show that some 1.65m cars new cars were registered.

That was a small increase over 2020_ when the impact of the first Covid-related lockdowns and dealer closures sent sales plummeting.

But it was still the second-worst figure recorded in nearly three decades_ and 28% down on its pre-pandemic level.

At the beginning of the year_ there was a further lockdown_ while any hopes of a lasting recovery later on were dashed by a severe shortage of semiconductors - or computer chips.

These are critical components in modern cars_ being used in areas such as engine management and emissions control_ emergency braking_ airbags_ entertainment systems and navigation.

A modern car can use between 1500 and 3000 semiconductors.

But outbreaks of Covid-19 in regions where the chips are made_ particularly in southeast Asia_ caused factory closures that restricted supplies.

The motor industry also faced intense competition for the chips that were available from other sectors_ particularly the consumer electronics industry.

This forced manufacturers to allocate what supplies they had to the most profitable models_ as well as to those which helped them meet emissions targets - notably electric and plug-in hybrid cars.