Car production hits low

Car production in the UK hit its lowest level in June for nearly 70 years – with the exception of Covid-depressed 2020 – as the global chip shortage and other factors took their toll on output.

Factories churned out 69,907 units in June this year, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT), which was up from the previous year but otherwise the worst total since 1953.

The monthly performance capped a turbulent six months for UK car production, with the pandemic, new trading rules with Europe and supply issues causing ongoing challenges. 

A total of 498,923 units were built, a drop of 38.4 per cent on the five-year, first-half average, which represents a loss of 311,160 cars.

More than eight in 10 models – 83.4 per cent – made in the UK were shipped overseas, with 51.7 per cent headed into the EU, followed by the US taking 18.8 per cent of exports.

Production of electric vehicles remained steady year-to-date with 22.6 per cent of all cars alternatively fuelled.

The SMMT says besides the global shortage of semiconductors, other pressures facing carmakers include staff shortages due to self-isolation arising from notification of Covid contacts outside the workplace. 

Mike Hawes, pictured, chief executive, adds: “While the UK automotive industry continues to suffer the effects of the global pandemic, with first-half year production down significantly and a tough few months looming, the sector has the capability to recover. 

“The latest investments into new models and battery production show a bright future is within reach, yet the industry still faces headwinds.”