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UK car manufacturing: 2021 is the worst year since 1956


UK car production sees its worst year since 1956 in 2021, with just 859,575 units built. This represents a 6.7% drop from 2020 and 34% fewer cars produced than before the 2019 pandemic.

The ongoing global shortage of semiconductor chips – between 1,500 and 3,000 chips used to make a typical modern car – is the main problem, causing factories to reduce or even halt production. export.

Mike Hawes, chief executive officer of the Society of Motor Manufacturers and Traders (SMMT), which released the figures, predicts the problem will start to ease significantly in the second half of 2022, but could still have an impact in 2023.

Another effect of Covid-19 was that self-isolation resulted in staff shortages throughout the year, while showroom closures due to lockdown measures also resulted in reduced demand at locations. However, the pandemic is not the only cause of problems with the end of Honda’s factories in Swindon accounted for about a quarter of the year’s decline.

The good news is that UK factories are already churning out a record number of alternative fuel vehicles (EVs and hybrid vehicles) in 2021 – 224,011 units were moved off the production line for the whole year. This represents 26.1% of all new cars produced.

Output for the overseas market decreased by 5.8% to 705,826 units, while output for the domestic market decreased by 10.6% to 153,749 units. The EU accounts for 55% of total exports, followed by the US, China and Japan.

The SMMT added that, as a result of the signing of the Trade and Cooperation Agreement (TCA), publicly announced investment in the automotive industry reaching a potential £4.9 billion by 2021, is a total the highest number since 2013. This includes investment announcements in the Port of Ellesmere, Halewood, Norfolk, Sunderland and Surrey.

Hawes commented: “The year 2021 is another extremely difficult year for the UK car industry – one of the worst since World War II, leaving the sector virtually empty. subject to structural and especially Covid-related impacts.

“Despite the difficult year, there is still optimism. With Brexit uncertainty largely overcome with the TCA deal, investments have been released, most of which will help transform the sector into a zero-emissions future.

“This is a global vote of confidence in the UK, but must be aligned with our long-term commitment to competitiveness; supply chain support in overcoming parts shortages, help with skills and training, and most urgently, measures to mitigate the escalating energy costs that threaten viability . ”

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