The variety of automobiles constructed within the UK fell by 27% final month, the worst January determine for over a decade, as coronavirus shutdowns and post-Brexit border friction hampered manufacturing.
The Society of Motor Producers and Merchants (SMMT) mentioned simply over 86,000 automobiles had been constructed, a fall of 32,262 in contrast with January final yr.
Chief government Mike Hawes mentioned the numbers had been trigger for “grave concern”.
January marked the seventeenth consecutive month of decline in output.
The commerce business physique instructed that the continued influence of the coronavirus disaster, prolonged manufacturing unit shutdowns, world provide chain issues, and friction within the new post-Brexit buying and selling preparations, had all contributed to the autumn.
Regardless of these challenges, exports accounted for greater than eight in 10 of all automobiles made final month. However shipments to main markets together with the European Union (EU), United States and Asia had been all considerably decrease, it mentioned.
The price of misplaced automotive manufacturing has elevated to greater than £11bn since a yr in the past, the SMMT discovered.
Mike Hawes mentioned that subsequent week’s Price range would current Chancellor Rishi Sunak with “a possibility to spice up the business by introducing measures that may help competitiveness, jobs and livelihoods.”
The analysis additionally discovered that UK manufacturing of battery electrical (BEV), plug-in hybrid (PHEV) and hybrid automobiles (HEV) continued to develop from final yr, with mixed output of those automobiles rising 18.9% in January to 21,792 items.
A couple of in 4 of all automobiles leaving factories was constructed to run on various fuels.
“While there have been some very welcome latest bulletins, we have to safe our medium to long-term future by creating the situations that may entice battery ‘gigafactory’ funding and rework the availability chain,” Mr Hawes mentioned.
These newest figures come because the destiny of Vauxhall’s Ellesmere Port automotive manufacturing unit, which makes the petrol-fuelled Astra, hangs in the balance.
Stellantis, Vauxhall’s father or mother firm, has been in talks with the federal government for weeks in regards to the website, which employs greater than 1,000 folks. It’s thought the agency is searching for monetary incentives to make a totally electrical automotive on the manufacturing unit.
There are fears Stellantis, shaped from the merger of France’s PSA Group and Fiat-Chrysler, might select to shut the manufacturing unit as an alternative.
Stellantis bosses have beforehand voiced concern in regards to the UK’s resolution to deliver ahead a ban on new petrol and diesel automobiles to 2030.
The agency is simply prone to spend money on making a brand new technology of electrical automobiles within the North West of England whether it is assured that the UK will be capable of construct the mandatory battery manufacturing amenities to service Ellesmere Port and different UK automotive vegetation.
A authorities spokesperson mentioned on Thursday that it was “dedicated to making sure the UK continues to be the most effective places on the planet for automotive manufacturing.
“We’re doing all we will to guard and create jobs, whereas securing a aggressive future for the sector.”