UK car production slumps to 55-year low in October

by | Nov 26, 2021

Share this article

UK car manufacturing fell 41.4% year-on-year in October, with just 64,729 vehicles rolling off production lines, making it the industry’s worst October since 1956.
According to the Society of Motor Manufacturers and Traders, the main cause for the weak level of production was the ongoing global semiconductor shortage, which was also compounded by the closure of Honda’s Swindon factory towards the end of July.

Production for domestic and overseas markets was down 37.9% and 42.1%, respectively. Of all cars built in the UK in October, 80% were shipped abroad, with 60% of that number destined for EU countries. However, EU shipments fell 29.2%, while the number of cars sent to Japan and the US fell 57.1% and 67%, respectively.

On a positive note, electric, plug-in hybrid and conventional hybrid cars made up 30.9% of all cars built in the UK during October, with EV manufacturing rising 17.5% year-on-year to 8,454 units.

 

Following October’s historical soft performance, year-to-date production output was still 2.9% below 2020’s Covid-impacted performance at 721,505 units.

SMMT chief executive Mike Hawes said: “These figures are extremely worrying and show how badly the global semiconductor shortage is hitting UK car manufacturers and their suppliers.

“Britain’s automotive sector is resilient, but with Covid resurgent across some of our largest markets and global supply chains stretched and even breaking, the immediate challenges in keeping the industry operational are immense.”

 

Share this article

Related articles

UK inflation hits 40-year high of 10.1%

UK inflation hits 40-year high of 10.1%

Higher food prices helped push up inflation in September, official data showed on Wednesday, to a record 10.1%. According to the Office for National Statistics, the consumer price index rose by 10.1% in the 12 months to September, compared to August's rate of 9.9%....

Reports of delay to bond sale ‘inaccurate’ – BoE

Reports of delay to bond sale ‘inaccurate’ – BoE

The Bank of England appeared to deny reports on Tuesday that it wanted to delay selling billions of pounds of government bonds. The central bank acquired £838bn of gilts during its quantitative easing programme. It had intended to start selling them on 6 October, but...

Trending articles

IFA Talk logo

IFA Talk is our flagship podcast, designed to fit perfectly into your busy life, bringing the latest insight, analysis, news and interviews to you, wherever you are.

IFA Talk Podcast - listen to the latest episode