Last October’s 65,000 unit output is the lowest in 65 years.
Part supply issues including chip shortage are to blame.
Lower output numbers are complicating the transition over to EVs.
It’s been a tough year for all automakers. Globally, plants were forced to temporarily shut down dues to part supply issues dramatically cutting down inventories. The situation is quite bad in the UK as last October’s output numbers were on par with the 1956 numbers.
Unfortunately, the industry’s not seeing the light at the end of the tunnel quite yet. So far, experts estimate that the auto sector has lost in excess of $60 billion in sales worldwide with more losses expected. As it stands, the coronavirus pandemic is resurging which can and likely will continue to negatively impact production.
October of 2021 was especially bad for the UK’s automotive industry. With only 65,000 new vehicles produced, not only is this a 65-year low but the figure is down 41% from the same period last year. According to Sky News, these results will negatively impact the transition towards EVs. Even so, the UK’s managed to assemble more EVs so far in 2021 than it had in pre-pandemic 2019.
Society of Motor Manufacturers and Traders (SMMT) Chief executive Mike Hawes said of October’s production data: “These figures are extremely worrying and show how badly the global semiconductor shortage is hitting UK car manufacturers and their suppliers. Britain’s automotive sector is resilient but with COVID resurgent across some of our largest markets and global supply chains stretched and even breaking, the immediate challenges in keeping the industry operational are immense.”