Car production ends 18 months of decline
UK car production grew in March ending a run of months of consecutive decline.
According the Society of Motor Manufacturers and Traders, UK car production rose 46.6 with 115,498 cars manufactured.
Compared with the five-year March average, production was down 22.8%, equivalent to a loss of 34,047 units, and some 32.1% lower than the 2017 record for the month, and rounds off a four per cent decline in the first quarter of 2021 with 306,558 units produced, 12,694 less than a year before.
March output for the domestic market rose 19.4% to 20,269 units with exports also increasing, up 54.1% to 95,229 units, meaning 82.5% of cars produced were sent overseas in March.
Exports to the EU, US and Asia were all up by 33.5%, 36.4% and 54.1% respectively.
Mike Hawes, SMMT chief executive, said: “The first rise for UK car production since summer 2019 is a major step in the right direction but belies the underlying situation. With factories shut for much of March 2020, output was always going to be up but it remains below average, with some £11bn worth of production lost over the past year. Whilst the Covid situation is improving in the UK and in some major export markets, manufacturers are still struggling to manage residual issues, most notably the global semiconductor shortage.
“The shift towards electrified vehicle production is fundamental to the future of this vital sector. Securing investment for this transformation will depend on the global competitiveness of our industry. Companies are already having to absorb additional costs arising from our new trading arrangements with the EU, but must also invest in new technologies, new processes and upskilling the workforce. A competitive business environment that helps reduce operating costs and policies that support manufacturing will be essential if the transition to zero is to be Made in the UK.”
The SMMT has also reported that 60% of large firms expect the Covid recovery to take at least six months, and a third of these at least two years.
The turnaround is projected to begin in 2021 as the sector is forecast to produce more than one million units this year, some 130,000 additional cars than in 2020 when the pandemic saw production fall to its lowest level since 1984.
