UK's new car registrations slumped to their worst June since 1996 as ongoing component supply issues contributed to a 24.3 per cent decline.

Society of Motor Manufacturers and Traders (SMMT) chief executive Mike Hawes said semiconductor shortages were "stifling the new car market even more than last year's lockdown" after another month of declining sales left the sector 11.9 per cent down year-to-date, according to AMonline.

A total of 140,958 new vehicles were registered in June, leaving the year to date figure at 802,079 units; the second-worst first half total since 1992.

Mr Hawes said: "Electric vehicle (EV) demand continues to be the one bright spot, as more electric cars than ever take to the road, but while this growth is welcome it is not yet enough to offset weak overall volumes, which has huge implications for fleet renewal and our ability to meet overall carbon reduction targets.

"With motorists facing rising fuel costs, however, the switch to an electric car makes ever more sense and the industry is working hard to improve supply and prioritise deliveries of these new technologies given the savings they can afford drivers."

As petrol and diesel car sales slumped last month, EV registrations grew 14.6 per cent, reaching a market share of 16.1 per cent (June 2021: 10.7 per cent).

However, plug-in hybrid vehicle (PHEV) registrations dipped by 36.5 per cent to 5.5 per cent market share.

SMMT data showed that plug-in vehicles comprised more than a fifth (21.6 per cent) of new cars joining the road last month.

AMonline said that while EVs are currently viewed as the sector's saviour, current registrations are built on a foundation of packed order books that have protected carmakers and retailers from the growing cost-of-living crisis.

In the longer term, concerns surrounding the affordability of EVs in a fragile economic climate remain.