UK’S 2021 CAR PRODUCTION FALLS TO LOWEST SINCE 1956 DUE TO COVID-19

Fri 28 January 2022:

According to an industry analysis released Thursday, the COVID-19 pandemic has had a significant influence on car production in the UK, with production decreasing by 6.7 percent to 859,575 units in 2021, the lowest amount since 1956.

“The shortage of semiconductors, a critical component in modern car manufacturing, was the principal cause of the decline, with factories having to reduce or even pause production while awaiting parts whose supply has been heavily constrained by the global pandemic,” said the Society of Motor Manufacturers and Traders (SMMT), the trade association for the British motor industry, in the report.

Despite the success of “click and collect” services, manufacturers also struggled with staff shortages resulting from the need to self-isolate, as well as low demand, with automobile showrooms shuttered for months owing to lockdowns.

Other non pandemic-related issues also contributed to the decline, it said, “most notably the closure of a major UK car plant in July, which accounted for around a quarter of the annual decline.”

“2021 was another incredibly difficult year for UK car manufacturing, one of the worst since the Second World War which lays bare the exposure of the sector to structural and, especially, COVID-related impacts,” said SMMT Chief Executive Mike Hawes.

Despite the overall poor performance, the report said, British car factories had produced a record number of battery electric, plug-in hybrid and hybrid electric vehicles — almost a quarter of a million. These zero and ultra-low emission vehicles therefore represented more than one in four of all cars made last year.

In a separate report published on Thursday, SMMT also said Britain’s engine manufacturing decreased by 10.8 percent in 2021 to just over 1.6 million units, with the impact of the semiconductor shortage on car and van production also reducing demand for engines.

Nevertheless, Hawes said, “there is hope that the sector can recover in 2022 as vehicle volumes rise again.”

“However, action is needed to combat rising energy costs and supply chain shortages, while long-term we must continue to upskill our manufacturing workforce to produce electrified powertrains,” he added.

Jaguar Land Rover was Britain’s biggest car maker in 2021, with 220,554 units, followed by Nissan with 204,522 and BMW’s Mini with 186,762 vehicles.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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