5 July 2021

Semiconductor shortages continue to impact UK car production

Last May there was a tenfold increase in the UK’s car production compared last year’s May however when comparing this to pre-pandemic levels it is down as much as 52%.

Last May there was a tenfold increase in the UK’s car production compared last year’s May however when comparing this to pre-pandemic levels it is down as much as 52%.

Data from the SMMT suggests just over 54K cars were produced in May compared to only 5,214 In May 2020 as the pandemic halted the industry.

From the start of 2021, the data also shows that UK factories have produced almost 430K cars which is up 105K compared to year prior, but the overall output remains down 22.9% on the same five-month period in 2019.

As a result of the pandemic the semiconductor shortage continues to play havoc with the industry as manufacturers and automotive businesses face this challenge and try to recover.

UK car production continues to be export-led, with 83.6% of all cars built so far in 2021 shipped overseas. The European Union remains by far the most important destination for British cars, taking 56.0% of all exports, followed by the US (18.3%) and China (7.3%)

Every car- and van-maker is being impacted by the computer chip crisis, with some delivery times for cars lengthening from three to six months, and many new vans not expected to be delivered until 2022.