UK Car Production Continues to Decline for 18th Consecutive Month Amid Coronavirus Crisis
The Impact of the Coronavirus Crisis on UK Car Production
The ongoing coronavirus crisis has had a significant impact on the automotive industry in the UK, with the number of cars built in the country falling for the 18th consecutive month. According to figures from the Society of Motor Manufacturers and Traders (SMMT), production decreased by 14% in February compared to the same month last year, with 105,008 cars leaving factory gates. This marks the weakest February performance in over a decade, highlighting the challenges faced by the industry due to the pandemic.
The closure of showrooms, new customs processes, and global supply chain constraints have all contributed to the decline in car production. Production for the domestic market saw a sharp decrease of 34.9%, while exports fell by 8.1%, with most cars heading to the EU. Despite these challenges, there has been a recent increase in the production of battery electric, plug-in hybrid, and hybrid vehicles, with total production of these vehicles rising by a quarter to 23,019 units in February.
Mike Hawes, SMMT chief executive, emphasized the impact of the pandemic on UK car production, stating that the industry has been severely affected. However, he also highlighted some positive developments, such as the reopening of showrooms in April, progress in vaccinations, and a roadmap to kick-start the economy. Hawes believes that the automotive sector can play a crucial role in supporting jobs, driving growth, and transitioning to zero-emission mobility.
Despite the challenges faced by the industry, there are forecasts for car production to increase to 1.05 million this year, up 15.8% from the previous year, and reaching 1.1 million in 2022. This indicates a potential recovery for the automotive sector in the UK, as the country works towards economic recovery and sustainability.
As the industry navigates through these challenging times, it is essential for stakeholders to work together to support the automotive sector and ensure its resilience in the face of future crises. The coronavirus pandemic has highlighted the importance of adaptability and innovation in the automotive industry, and it is crucial for companies to continue to evolve and embrace new technologies to drive growth and sustainability in the future.