Car production in the UK fell for the eighth month in a row in February, figures from the Society of Motor Manufacturers and Traders (SMMT) have revealed, with the industry suffering a 41.3% drop in output as semiconductor shortages have a continued impact.
Factories produced 61,657 cars, representing a drop of 43,351 compared with February 2021. The SMMT said it was the weakest-performing February since 2009.
The drop in production was again attributed to the on-going shortage of semiconductors, as well as the permanent shutdown of Honda’s Swindon plant last summer.
The SMMT says Russia’s invasion of Ukraine is likely to pose additional challenges for the UK automotive industry, despite the two countries taking only 1.1% and 0.5% respectively of UK production last year.
Accessibility of raw materials is expected to be hit as a result of the war, with aluminium, palladium and nickel, which are used for battery manufacturing, all sourced from the region. Parts such as wiring harnesses are also manufactured in Ukraine.
However, production of electrified models remained buoyant in February, with 15,905 battery-electric (BEV), plug-in (PHEV) and mild-hybrid (MHEV) vehicles forming 25.8% of all UK output.
Meanwhile, eight in 10 cars produced were exported, with 31,673 units, or 62% of February’s production, headed for the European Union. The US claimed 11.0% of exports and 8.7% went to China.
The SMMT says the growing production of low-emission vehicles will support the UK’s continued investment into EVs. The UK has invested £10.8 billion in EVs since 2011, including the construction of battery gigafactories.
SMMT chief executive Mike Hawes said: “The automotive industry is undergoing its most radical transformation in more than 100 years, but manufacturers are simultaneously facing the most extreme operating conditions as global economic headwinds drive up costs and constrain supply.
“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.”
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