UK automobile manufacturing fell sharply final month, marking the worst July efficiency for the business since 1956, a commerce group has mentioned.

The worldwide microchip scarcity, employees being affected by the so-called pingdemic, and shutdowns meant simply 53,438 vehicles have been constructed within the month.

That was a drop of 37.6% in comparison with July final 12 months, the Society of Motor Producers and Merchants (SMMT) mentioned.

It comes as gross sales of second-hand automobiles are hovering.

General automobile manufacturing within the 12 months so far is nearly a fifth larger than throughout 2020 at 552,361 automobiles, however that’s nonetheless 28.7% down on 2019 pre-pandemic ranges.

SMMT boss Mike Hawes mentioned the July figures “lay naked the extraordinarily powerful situations UK automobile producers proceed to face”.

“Whereas the impression of the ‘pingdemic’ will reduce as self-isolation guidelines change, the worldwide scarcity of semiconductors exhibits little signal of abating,” he mentioned.

New vehicles typically embrace dozens of microchips – additionally known as semiconductors – however a scarcity has put stress on quite a lot of carmakers, who’re competing instantly with tech firms and the patron electronics sector for provide.

Initially of the pandemic, many automobile producers cancelled orders on account of fears of a protracted downturn in gross sales. Nevertheless, as demand began to recuperate, firms discovered themselves behind the queue for microchips.

Producers have needed to grapple with absent employees as coronavirus restrictions eased on account of staff being pinged by the NHS Covid app.

Analysts at Goldman Sachs have predicted that the automotive sector is about to be hit onerous by the chip scarcity, with as much as $20bn (£14bn) wiped off world carmakers’ working earnings in 2021.

The SMMT additionally revealed that automobile exports from the UK fell 37.4% in July, with simply over 45,000 automobiles shipped abroad.

Nevertheless, demand for alternatively-fuelled fashions is selecting up. Greater than 1 / 4 of all vehicles made in July have been both battery electrical or hybrid electrical, the SMMT mentioned, the best share on report.

“The UK automotive business is doing what it may well to maintain manufacturing strains going, testomony to the adaptability of its workforce and manufacturing processes,” Mr Hawes added.

“However authorities may also help by persevering with the supportive Covid measures at present in place and boosting our competitiveness with a discount in power levies and enterprise charges for a sector that’s strategically necessary in delivering internet zero.”

The automobile business is an important a part of the UK economic system accounting for £78.9bn turnover.

It employs some 180,000 folks in manufacturing and 864,000 throughout the broader provide chain. Greater than 30 producers construct round 70 automobile fashions within the UK.