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Car Production in UK Still at Half of Pre-COVID Capacity: Report

By: Auto Desk

Edited By: Mayank Gupta

Trending Desk

Last Updated: December 03, 2022, 10:54 IST

United Kingdom

Image Used for Representational Purpose (Photo: News18)

Image Used for Representational Purpose (Photo: News18)

The car production in UK witnessed growth in October 2022 but due to global shortage of semi-conductor chips, it couldn't touch the expected figures

United Kingdom’s car production numbers went into the green in October following a fall noticed in September. Recently released data suggests that car manufacturing in the UK in October rose by 7.4 percent to climb up to 69,534 units.

Also Read: Tesla Surpasses 3 Million Car Production Milestone: Elon Musk

Although presenting a positive outlook in terms of short-term boost, the figures, unveiled by the Society of Motor Manufacturers and Traders (SMMT), also suggest that car manufacturing in the UK is running at approximately half the pre-pandemic level. Supply chain turbulence that sprouted up during the COVID-19 pandemic, continues to hold sway over a large chunk of the UK automotive market, the SMMT report stated.

Despite production registering year-on-year growth since 2021, production is down by 48.4 percent compared to October 2019, when a total of 1,34,669 units were manufactured. Compared to the five-year pre-COVID-19 average for October, the production in terms of units manufactured is down by 52.8 percent. This shows that the industry is yet to go back to pre-pandemic functioning, despite production for the home market rising by 12.5 percent and manufacturing for overseas markets rising by 6.3 percent.

Exports have been driven up by the latest volume, luxury and specialist models. The figures showed that 81.2 percent (56,469 units) of the cars made in the UK were heading overseas.

Over half of the exports (54.9 percent) were headed to European Union. There was a rise in the number of units exported to the United States, Japan, South Korea, Australia, and Turkey. However, the overall volumes to these markets remained small compared to the EU despite exports to this regional bloc declining by 2.7 percent. UK production of battery electric, plug-in hybrid, and hybrid electric vehicles also registered growth.

The report stated that uncertainty due to supply chain turbulence, especially the global chip shortages, is still impacting the UK car manufacturing sector.

Mike Hawes, SMMT Chief Executive, highlighted that “getting the sector back on track in 2023 is a priority, given the jobs, exports and economic contribution the automotive industry sustains." He further emphasised on the need for more favourable conditions for investment, especially in affordable and sustainable energy, as part of a supportive framework for automotive manufacturing.

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first published:December 03, 2022, 10:54 IST
last updated:December 03, 2022, 10:54 IST
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