UK automotive manufacturing declined 41.4% in October as factories turned out 64,729 models, Based mostly on The latest figures launched right now by the Society of Motor Producers and Retailers (SMMT).
It was the fourth straight month of decline and the weakest October since 1956 as corporations grappled with The worldwide scarcity of semiconductors which led to manufacturing sprimepages. The weak output totals As in contrast with final yr are exacerbated by the closure of a UK automotive plant On The prime of July, a deficit Which will influence figures for a yr, the SMMT noticed.
On a constructive notice, manufacturing of The latest battery electrical (BEV), plug-in hybrid (PHEV) and hybrid (HEV) automobiles comprised 30.9% of all automotives made in October. BEV manufacturing rose 17.5% To eight,454 models, which means that, So far this yr, UK automotive makers have produced Greater than 50,000 zero emission automobiles, exceeding The complete constructed Inside the complete of the pre-pandemic 2019.
Production For every home and overseas markets fell by double digits in the months, down 37.9% and 42.1% respectively.
The SMMT noticed that over 80% of all automotives made have been for export with most Of these (60%) sure for the EU. General, however, shipments to the EU fell by A comparatively modest 29.2%, whereas these to Japan have been down 57.1% and to the US down 67.0%.
The month-to-month efficiency Signifies that yr-to-date output is under 2020, down 2.9% to 721,505 models, beneathscoring the influence semiconductor scarcitys and structural modifications are having, Whilst in contrast with a yr By which UK automotive manufacturing was badly affected by manufacturing unit sprimepages arising from The primary lockdowns.
The latest unbiased manufacturing outlook report (ready for the SMMT) forecasts UK automotive And Lightweight enterprise car (LCV) manufacturing to be under A million for the second consecutive yr, however to then recuperate to over A million in 2022, with the potential To Obtain 1.2 million in 2024 if aggressive circumstances prevail.
Mike Hawes, SMMT Chief Authorities, said: “These figures are terribly worrying and current how badly The worldwide semiconductor scarcity is hitting UK automotive manufacturers and their suppliers. Britain’s automotive sector is resilient however with Covid resurgent throughout A pair of of our largest markets and worldwide current chains stretched and even breaking, the quick challenges in primarytaining the enterprise operational are immense. Authorities Might assist the enterprise with measures To Increase aggressiveness In accordance to worldwide rivals, notably in tackling extreme power prices, supporting employment and teaching, and serving to companies whose cashflow is beneath strain from these traditionally poor manufacturing numbers.”
GlobalData evaluation (under chart) of primary car markets The world over reveals how the enterprise recuperateed sharply after the market shutdowns of 2020, however has fallen again since due primarily To current chain factors (particularly semiconductor scarcitys) Which have constrained gross sales.