UK car production fell 27% in August, making for the second consecutive month of decline, as the global chip shortage continued to have an effect on the industry.
According to the Society of Motor Manufacturers and Traders (SMMT), 37,246 cars were made in the UK in the month, with the shortage of semiconductors leading to production stoppages, as well as the timing and length of some manufacturers’ summer factory shutdowns.
But despite those challenges, production of battery electric (BEV), plug-in hybrid (PHEV) and hybrid (HEV) cars surged to a new high, representing 27.6% of all cars made, or 10,274 vehicles.
That meant UK car factories had turned out 137,031 “alternatively-fuelled” cars since January, 51,679 more than the same period in 2020.
While manufacturing for the UK market increased 3.3% in the month, the rise was equivalent to just 255 additional units, and exports fell “dramatically”, by 32.5%.
A total of 29,200 cars were shipped overseas, with the decline driven by falling exports to distant markets including Australia, the United States and China, down 74.9%, 65.7% and 58.7% respectively.
Exports to the European Union held up better, falling 4.9%, accounting for almost seven in every 10 cars exported in August.
Production for the year-to-date remained up, by 13.8% at 589,607 cars, driven by exports with 83.2% of everything made heading for markets abroad.
The SMMT said the performance, however, needed to be set in context against a Covid-hit 2020, as it remained “significantly lower” than in 2019, by 32%.
Compared to the five-year average for the first eight months of the year, total production was down 42.8%, or 440,920 fewer units.
“Another significant decline for UK car production is extremely worrying both for the sector and its many thousands of workers nationwide,” said SMMT chief executive Mike Hawes.
“While not the only factor at play, the impact of the semiconductor shortage on manufacturing cannot be overstated.
“Carmakers and their suppliers are battling to keep production lines rolling with constraints expected to continue well into 2022 and possibly beyond.”
Hawes said job support schemes such as furlough had proven a “lifeline” to automotive businesses, but asserted that its cessation on Thursday came at “the worst time”, with the industry still facing Covid-related stoppages, damaging the sector and threatening the supply chain.
“Other countries have extended their support – we need the UK to do likewise.”
