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AUTO NEWS – UK automobile manufacturing falls 41.5% in September

UK automobile manufacturing falls 41.5% in September


Automotive manufacturing within the UK fell 41.5 per cent in September 2021 – the third consecutive month of decline and the worst September for the business since 1982.

Solely 67,169 automobiles rolled off manufacturing traces throughout the month, in contrast with 114,732 in September 2020, as the worldwide semiconductor scarcity continued to hinder producers.

The Society of Motor Producers and Merchants (SMMT), which launched the figures, stories that 83 per cent of automotive corporations have been negatively impacted by the chip scarcity, which has led to decreased orders, value will increase, logistical delays and disruption.

The UK automotive provide chain has to this point spent £2.4 billion managing extra prices from the chip scarcity, all of which is unlikely to be recovered. Some 56 per cent of corporations don’t anticipate provide constraints to enhance till the third quarter of 2022, whereas 38 per cent are having to cut back their working hours to deal with the issue.

Roughly one in 10 corporations have made redundancies or restructured their enterprise because of the scarcity, with 65 per cent searching for an extension to Coronavirus job retention schemes, arguing that the impact of the pandemic continues to be pronounced on the business despite the fact that the virus has receded.

The manufacturing of alternatively fuelled automobiles – together with electrical, plug-in hybrid and standard hybrid automobiles – has continued to interrupt information, nevertheless. These signify 32.3 per cent of all new automobiles constructed – 21,679 items in September 2021 and 158,710 to this point this yr.

Manufacturing for the home and oversea markets fell 47.4 per cent and 39.6 per cent respectively, with solely 14,297 automobiles constructed for UK consumers and 52,872 despatched overseas.

Manufacturing for the 2021 year-to-date continues to be marginally increased than it was at this level in 2020, however continues to be 33.5 per cent down on the identical interval in 2019 – the final yr unaffected by Covid-19 – and 44.1 per cent down on the five-year common.

Mike Hawes, chief government of the SMMT, mentioned: “The substantial decline in UK automobile output in September continues the worrying pattern we’ve got seen over the previous three months. The business is constant to battle the results of the pandemic with the scarcity of semiconductors stalling manufacturing.”

Hawes added that the Autumn Funds “missed the chance to supply significant short-term assist given Covid-related provide constraints and rising power payments”. He continued: “That is disappointing given the sector’s significance and its potential to create properly paid jobs throughout the areas and the revenues it generates, notably from exports.”

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AUTO NEWS – UK automobile manufacturing falls 41.5% in September
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