UK automobile manufacturing down 41.4% in October
UK automobile manufacturing declined 41.4% in October as factories turned out 64,729 models, based on the newest figures launched at the moment by the Society of Motor Producers and Merchants (SMMT).
It was the fourth straight month of decline and the weakest October since 1956 as companies grappled with the worldwide scarcity of semiconductors which led to manufacturing stoppages. The weak output totals in comparison with final 12 months are exacerbated by the closure of a UK automobile plant on the finish of July, a deficit that may affect figures for a 12 months, the SMMT famous.
On a constructive observe, manufacturing of the newest battery electrical (BEV), plug-in hybrid (PHEV) and hybrid (HEV) automobiles comprised 30.9% of all vehicles made in October. BEV manufacturing rose 17.5% to eight,454 models, which means that, thus far this 12 months, UK automobile makers have produced greater than 50,000 zero emission automobiles, exceeding the whole in-built the entire of the pre-pandemic 2019.
Manufacturing for each home and abroad markets fell by double digits within the months, down 37.9% and 42.1% respectively.
The SMMT famous that over 80% of all vehicles made have been for export with most of those (60%) certain for the EU. Total, nevertheless, shipments to the EU fell by a comparatively modest 29.2%, while these to Japan have been down 57.1% and to the US down 67.0%.
The month-to-month efficiency signifies that year-to-date output is beneath 2020, down 2.9% to 721,505 models, underscoring the affect semiconductor shortages and structural modifications are having, even in comparison with a 12 months during which UK automotive manufacturing was badly affected by manufacturing unit stoppages arising from the primary lockdowns.
The most recent unbiased manufacturing outlook report (ready for the SMMT) forecasts UK automobile and light-weight business automobile (LCV) manufacturing to be beneath a million for the second consecutive 12 months, however to then get better to over a million in 2022, with the potential to achieve 1.2 million in 2024 if aggressive circumstances prevail.
Mike Hawes, SMMT Chief Govt, stated: “These figures are extraordinarily worrying and present how badly the worldwide semiconductor scarcity is hitting UK automobile producers and their suppliers. Britain’s automotive sector is resilient however with Covid resurgent throughout a few of our largest markets and world provide chains stretched and even breaking, the speedy challenges in holding the business operational are immense. Authorities can assist the business with measures to spice up competitiveness consistent with world rivals, notably in tackling excessive power prices, supporting employment and coaching, and serving to companies whose cashflow is underneath stress from these traditionally poor manufacturing numbers.”