UK car production declined in July due to chip, staff shortages

by SpeedLux
London's busy roads

Britain’s auto production in July declined by 37.6 percent year-on-year, largely driven by the global shortage of semiconductors and staff absence due to the COVID-19 self-isolation, the Society of Motor Manufacturers and Traders (SMMT) said Thursday.

The car manufacturing output in the country was 53,438 units in July, making it the worst July performance since 1956 as manufacturers going through the global shortage of semiconductors and staff absence resulting from the ‘pingdemic’ as they are notified by the COVID-19 tracing app, with some modifying summer shutdown timings to help manage the situation, according to the SMMT.

In July, production for the domestic market fell by 38.7 percent annually to 8,233 while manufacturing for export dropped by 37.4 percent to 45,205.

“These figures lay bare the extremely difficult conditions UK car manufacturers continue to face,” said Mike Hawes, CEO of the SMMT, adding that “while the impact of the ‘pingdemic’ will lessen as self-isolation rules change, the worldwide shortage of semiconductors shows little sign of abating”.

Notably, about 26 percent of all cars built in July were either battery electric vehicles (BEV), plug-in hybrid vehicles (PHEV), or hybrid electric vehicles (HEV), the highest share on record.

Hawes urged the government to offer continuing efforts to support the industry, saying “government can help by continuing the supportive COVID measures currently in place and increasing our competitiveness with a decrease in energy levies and business rates for a sector that is strategically important in delivering net zero”.

About 6,628,709 people in the UK have been confirmed as being infected with the coronavirus. The virus has killed 132,143 people in the country.

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