Car production down for 17th straight month
Car production in the UK fell 27.3% in January to 86,052 units, according to the latest figures issued by the Society of Motor Manufacturers and Traders (SMMT).
With a fall of 32,262, this was the worst January performance since 2009, and a 17th consecutive month of decline.
Multiple factors, including the ongoing effects of the pandemic, global supply chain issues, extended shutdowns and friction in the new trading arrangements following the end of the Brexit transition period, affected output.
Car manufacturing for both home and overseas markets was down, to 16,692 and 69,360 units respectively, representing falls of 18.3% and 29.1%.
In better news, the growth in UK production of battery electric (BEV), plug-in hybrid (PHEV) and hybrid vehicles (HEV) seen in 2020 continued, with combined output of these vehicles rising 18.9% in January to 21,792 units. This means more than one in four (25.3%) of all cars leaving factory gates was alternatively fuelled, further evidence of the UK’s growing capability in ultra-low and zero emission vehicle manufacturing.
Mike Hawes, SMMT chief executive,said: “Yet another month of decline for UK car production is a grave concern and next week’s Budget is the Chancellor’s opportunity to boost the industry by introducing measures that will support competitiveness, jobs and livelihoods. Whilst there have been some very welcome recent announcements, we need to secure our medium to long-term future by creating the conditions that will attract battery gigafactory investment and transform the supply chain. Most immediately, however, we must get our Covid-secure car showrooms back open, ideally before 12 April. This will be the fastest way to UK automotive manufacturing recovery.”
