Automotive production figures were “incredibly worrying” in November, as the UK produced the smallest number of new vehicles it has for the month since 1984.
The country produced just 75,756 vehicles last month, according to the Society of Motor Manufacturers and Traders (SMMT). Worse still, it marked the fifth consecutive month of declining production.
By comparison, in November 2020, the U.K. produced 106,243 vehicles, marking a 28.7 percent drop in production. So far this year, the country has made 797,261 vehicles, a drop of 6.2 percent as compared to 2020’s total of 849,525.
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“These are incredibly worrying figures, underscoring the severity of the situation facing the automotive industry,” said Mike Hawes, SMMT CEO. “With an increasingly negative economic backdrop, rising inflation and Covid resurgent home and abroad, the circumstances are the toughest in decades.”
SMMT blames both supply chain issues and the wider national backdrop for the falling production numbers. In addition to the chip shortage and other Covid-related disruptions, the U.K. also suffered a loss in production following the closure of a Honda plant this summer.
Although the production of vehicles intended for the domestic market fell by nearly 19 percent in November, that paled in comparison to the 30.4 percent drop in vehicles produced for export markets.
While eight in ten vehicles produced in the U.K. are destined for export, 60 percent of those are intended for Europe. As new customs and controls with the bloc come into effect on January 1, 2022, the U.K.’s automotive industry will be desperate for trade with the E.U. to be smooth.
“The industry is as well prepared as it can be for the implementation of full customs controls at UK borders from 1 January but any delays arising from ill-prepared freight or systems will place further stress on businesses that operate ‘just in time’,” said Hawes. “Should any problems arise, contingency measures must be implemented immediately to keep cross-border trade flowing smoothly.”
Whether it’s because of the drop in overall production or in spite of it, the production of electric vehicles accounted hit a new high, accounting for 13.7 percent of national manufacturing, more the twice what it was last year. Electrified vehicles (EVs and hybrids) accounted for nearly a third of U.K. output.