Van loadingDue to an increase in home deliveries and the economy opening up, sales of vans in the UK reached new records during the first six month of 2021.However, registrations for new cars were slow due to a shortage in computer chips that limited some models.According to the Society of Motor Manufacturers and Traders (which released the data), the industry is now facing a "long Covid” of supply problems.According to the SMMT, this would limit the recovery of the UK's car industry.The demand for electric cars has continued to grow despite the pandemic. They accounted for over one in ten cars sold in June.Before the pandemic, van sales were already strong. In 2019, the first six months of 2019 saw the best ever year-to-year ratio.According to industry experts, this is due in large part to the rapid growth in online shopping and home delivery, as well the introduction of "clean air zones" (or areas that allow for cleaner air) in many cities. These factors prompted businesses to invest more in new vehicles.The lockdown of last year caused a loss in momentum and sales dropped by 20% over the previous year. The vans business suffered less than other segments of the auto industry due to the rising popularity of home delivery services.With the economy opening, demand is back on its feet. More than 191,500 units were sold in the first six months, which is the third-highest total ever recorded.This was despite the ongoing shortage of semiconductors or computer chips. It affected production volumes and deliveries in June and took some energy out of this market.Last month, electric cars were more than 10% of all cars sold.However, car sales have not recovered at the same rate as commercial vehicle sales. They are still much higher in volume than commercial vehicles.In June, 186,000 new cars were registered. This is a 28% increase over last year. The comparison is artificial. Last summer, showrooms only began to reopen following the initial lockdown. Sales were also still very low.Continue the storyComparable to the average of the past decade's sales, June saw a 16.4% drop in sales and 26.8% in the first half. The surge in demand has been driven by company fleet buyers, but the shortage of semiconductors has slowed the recovery.Mike Hawes (chief executive of SMMT) stated that "with the UK's final phases of vaccine rollout underway and confidence growing, the automotive industry is now battling against a long Covid' vehicle supply problems.""Semiconductor shortages caused by Covid-constrained output worldwide are affecting vehicle production and disrupting supply on some models."Despite this disruption, electric vehicle sales have been increasing rapidly. Nearly 74,000 new batteries-powered cars were registered in the first half of 2019, six times more than the number for the same period last year.Electric cars accounted for more than 10% of all vehicles sold in June.The second-hand market has been boosted by the chip shortage. This has caused some customers to wait for long periods of time before their cars are available. However, used cars are now more expensive than they were previously, although these vehicles usually appreciate in value.Jamie Hamilton, Deloitte's automotive director, says that "demand is high". "But because of the scarcity of new cars, there are fewer used cars on the market. Prices have risen as a result."Unfortunately, there's little relief for the industry with the semiconductor shortage expected not to stop causing problems throughout the year and possibly into 2022."
