UK car production falls for eighth consecutive month following chip shortages
The UK’s automotive output fell 41.3 per cent in February as chip shortages don’t seem to end.
According to data from the Society of Motor Manufacturers and Traders (SMMT), car production went down to 61,657 units produced, the worst February since 2009.
Production for the domestic market went down 35.8 per cent, while overseas markets reported a 41.8 per cent slump.
While diesel and fuel car output seems to have come to a standstill, production of electric vehicles (EV) continued to thrive, with battery-electric, plug-in and hybrid cars representing 25.8 per cent of all production.
“The automotive industry is undergoing its most radical transformation in more than a hundred years, but manufacturers are simultaneously facing the most extreme operating conditions as global economic headwinds drive up costs and constrain supply,” said SMMT’s chief executive Mike Hawes.
“The sector entered 2022 hopeful for recovery, but that recovery has not yet begun, and urgent action is now needed to help mitigate spiralling energy costs and ensure the sector remains globally competitive to encourage the investment essential to growth, job security and the delivery of net zero ambitions.”
Car production is expected to face further disruption as a result of the invasion of Ukraine, SMMT analysts said. While both Russia and Ukraine represent a small market for the UK, shortages of materials used for car production such as aluminium and palladium could deal the sector a huge blow.
Commenting on the data, KPMG’s head of automotive Richard Peberdy said the impact of the war “will prolong the acute shortage of supply of new vehicles that we have seen over the last year.
“Any increase of Covid-19 restrictions in China will only further add to the complexity for car makers.”