Categories: Industry

UK car output suffers worst October for 65 years

 

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UK automotive manufacturing dropped by greater than 40% final month to the bottom stage recorded for October since 1956.

The Society of Motor Producers and Merchants (SMMT) mentioned the autumn was because of “a world scarcity of semiconductors which led to manufacturing stoppages”.

It added that the decline, in comparison with final 12 months, was exacerbated by the closure of a Honda plant in Swindon on the finish of July.

“These figures are extraordinarily worrying,” mentioned SMMT chief government Mike Hawes.

He added that they “present how badly the worldwide semiconductor scarcity is hitting UK automotive producers and their suppliers”.

New automobiles typically embody dozens of microchips – additionally referred to as semiconductors – however a scarcity has put strain on plenty of carmakers, who’re competing straight with tech corporations and the patron electronics sector for provide.

  • Why is there a chip scarcity?

The UK manufactured 64,729 automobiles in October, down 41.4% in contrast with the identical month final 12 months. The SMMT mentioned it was the fourth consecutive month of decline.

“Britain’s automotive sector is resilient however with Covid resurgent throughout a few of our largest markets and international provide chains stretched and even breaking, the fast challenges in holding the trade operational are immense,” mentioned Mr Hawes.

The shift away from conventional petrol and diesel automobiles continued, with manufacturing of battery electrical, plug-in hybrid and hybrid automobiles comprising 30.9% of all automobiles made in October.

The SMMT mentioned battery electrical automobile manufacturing rose by 17.5% to eight,454 automobiles.

“To date this 12 months, UK automotive makers have produced greater than 50,000 zero emission automobiles, exceeding the whole in-built the entire of the pre-pandemic 2019,” it mentioned.

The UK has mentioned it can ban the sale of latest petrol and diesel automobiles by 2030, and hybrids by 2035.

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