Global chip shortage and some extended summer factory shutdowns dent overall performance
London – UK car production fell 27.0% in August to 37,246 units, marking the second consecutive month of decline, the latest figures released today by the Society of Motor Manufacturers and Traders (SMMT) show.
Output was affected by the continuing global shortage of semiconductors leading to production stoppages, as well as the timing and length of some manufacturers’ summer factory shutdowns, SMMT said in a 30 Sept statement
Despite the challenges, production of the latest battery electric (BEV), plug-in hybrid (PHEV) and hybrid (HEV) cars surged to a new high, representing more than a quarter (27.6%) of all cars made.
In total, UK car factories have turned out 137,031 alternatively fuelled cars since January, up 51,679 units compared to the same period in 2020, SMMT added.
Production in the year-to-date remains up, by 13.8%, at 589,607 cars, driven by exports with 83.2% of all vehicles made heading for markets abroad.
The figures, however, remain significantly lower – 32% – than the pre-Covid 2019 levels.
Compared against the five-year average, the total is down nearly 43 for the first eight months of the year.
“Another significant decline for UK car production is extremely worrying both for the sector and its many thousands of workers nationwide,” said Mike Hawes, SMMT CEO.
Hawes went on to say that the impact of the semiconductor shortage on manufacturing ‘could not be overstated.’
“Car makers and their suppliers are battling to keep production lines rolling with constraints expected to continue well into 2022 and possibly beyond,” he added.
The industry official urged the UK government to extend its job support schemes, such as furloughs, which were ended on 30 Sept.
“[The schemes] have proven such a lifeline to automotive businesses yet its cessation today comes at the worst time, with the industry still facing Covid-related stoppages,” he added.
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