Automotive output falls 28.7 per cent despite EV boost
The UK automotive output declined 28.7 per cent in November to 75,756 units produced.
According to data from the Society of Motor Manufacturers and Traders (SMMT) released today, both domestic and overseas markets plunged, going down 18.8 and 30.4 per cent respectively.
“These are incredibly worrying figures, underscoring the severity of situation facing the automotive industry,” SMMT’s chief executive Mike Hawes said.
“Covid is impacting supply chains massively, causing global shortages – especially of semiconductors which is likely to affect the sector throughout next year. With an increasingly negative economic backdrop, rising inflation and Covid resurgent home and abroad, the circumstances are the toughest in decades.”
Year-to-date, UK automotive plants have produced 797,261 units – almost 433,000 less compared with pre-pandemic times. Exports, especially to Europe, accounted for 80 per cent of all cars produced last month – with 60.3 per cent shipped to the continent.
““The industry is as well prepared as it can be for the implementation of full customs controls at UK borders from 1 January but any delays arising from ill-prepared freight or systems will place further stress on businesses that operate just in time,” Hawes added.
“Should any problems arise, contingency measures must be implemented immediately to keep cross border trade flowing smoothly.”
Commenting on the news, KPMG’s head of automotive Richard Peberdy said supply challenges will continue throughout 2022.
“As component supply issues ease, production will increase to meet pent-up vehicle demand,” he said. “But I’d argue that we are entering a ‘new normal’ for car manufacturing and we won’t again see the levels of over-production and discounting that we did pre-pandemic.
“Instead, manufacturers will focus volume on more profitable vehicles and markets. Demand will change too and in light of sustainability concerns and hybrid working, consumers will be rethinking what they drive and how they access and pay for mobility more widely.”
Amid such concerning figures, the production of electric vehicles has accounted for more than a third of all vehicles made last month.
The output for battery electric vehicle was up by 52.9 per cent to 10,359 units – more than double the level of last year.