Car Production Falls To 13 Year Low

Wed 30th Mar 2022

UK car production is on the ropes once again as the latest figures from the Society of Motor Manufacturers and Traders show that this February was the worst since 2009.

The British motor industry turned out 61,657 vehicles in February, a fall of 43,351 compared to the previous, the only positive being that one in four was either a BEV, PHEV or Hybrid, although the analysis does suggest that manufacturers prioritised EVs as they have a higher margin.

A shortage of microchips and electrical components was once again the cause for the slump, with supply chain issues across the globe unlikely to improve through March and April with the Ukraine crisis also hitting hard.

Eighty per cent of the cars produced on these shores last month ended up being exported, which is encouraging for those worried about the impact of Brexit, and 62 per cent actually went to Europe.

“The automotive industry is undergoing its most radical transformation in more than a hundred years, but manufacturers are simultaneously facing the most extreme operating conditions as global economic headwinds drive up costs and constrain supply,” said SMMT CEO Mike Hawes. “The sector entered 2022 hopeful for recovery, but that recovery has not yet begun, and urgent action is now needed to help mitigate spiralling energy costs and ensure the sector remains globally competitive to encourage the investment essential to growth, job security and the delivery of net zero ambitions.”