UK car sales jump 25% in January on electric-vehicle demand

[LONDON] UK car sales rebounded the most in 7 months in January thanks to surging demand for battery-powered vehicles.

New-car registrations rose by a quarter last month, according to preliminary data from the Society of Motor Manufacturers and Traders.

One in five buyers opted for a car with a battery, with shipments of fully electric vehicles more than doubling and plug-in hybrids rising 45 per cent.

Last month's performance compares favourably to the prior-year period, when dealerships were closed due to Covid-19 lockdown measures. Even so, it's the biggest rise in monthly sales since June 2021.

The SMMT has previously said it expects sales to rebound this year as the semiconductor shortage eases and demand for battery-powered vehicles grows. The group will release more detailed January numbers later Friday (Feb 4).

While 2021 was supposed to represent a lasting recovery from the initial onslaught of the pandemic, UK car registrations inched up just 1 per cent to 1.65 million because of the persistent supply-chain snarls. BLOOMBERG