UK Car Production At 65-Year Low, But Net-Zero Production Shows Promise
Car production in the United Kingdom reached its worst July performance level for the industry since 1956. “Production overall remains up 18.3% on COVID-19 hit 2020 at 552,361 units,” cited SMMT, “but this is down significantly (-28.7%) on 2019 pre-pandemic levels when 774,760 cars rolled off production lines.”
Global microchip shortages, worker absences and factory shutdowns all contributed to the decline in production volumes. Many large automobile companies had to cut their output to accommodate these shortages, while experts believe that chip shortages could last until next year.
This summer, demand for alternatively fueled models — from battery electric to plug-in hybrid — saw an increase in production levels. More than a quarter of all cars made in July were electric or hybrids, the highest share on record. As recovery progresses, “government can help by continuing the supportive COVID measures currently in place and boosting our competitiveness with a reduction in energy levies and business rates for a sector that is strategically important in delivering net zero,” according to Mike Hawes, SMMT chief executive.