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The UK Automobile industry is facing hardships!

The number of cars produced fell by 41.4 % in October, the fourth month in a row, due to continued chip scarcity.

According to the Society of Motor Manufacturers and Traders (SMMT), carmakers produced 64,729 vehicles in October, the lowest number in 65 years. As a result, the domestic and international markets lost 37.9% and 42.1 % of their value, respectively.

In comparison to a COVID-affected 2020, the year-to-date output is down 2.9 %, totaling 721,505 units.

In October, regrettably, demand for electric vehicles remained relatively stable, with battery electric vehicles (BEVs), plug-in hybrids (PHEVs), and hybrids (HEVs) accounting for 30% of total production.

This year, the production of zero-emission vehicles has approached 50,000 units, up from 43,790-units in 2019, as EV production increased by 17.5% to 8454 units.

According to SMMT chief executive Mike Hawes, the figures are very concerning and show how badly global semiconductor scarcity is affecting UK car manufacturers and suppliers.

Despite the apparent resurgence of a few of the world’s largest markets, he claims that international transactions are stretched and even busting and that the current challenges in keeping the market functioning properly are massive.

He suggests that the UK government could aid the industry by improving its competitiveness against global competitors, addressing high energy costs, continuing to support employment and training, and assisting businesses whose cash flow is being strained by exceptionally low-performance numbers.

Global Business Magazine

Global Business Magazine

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