Parts shortages, staff absences and factory closures were among the headwinds that battered the UK automotive industry in 2021, prompting new car output to drop to its lowest level since 1956.
The latest figures from the Society of Motor Manufacturers and Traders (SMMT) have revealed that 859,575 cars came from UK factories last year, a "dismal" performance that equates to a 6.7% decline from 2020 and a 34% drop on pre-pandemic 2019.
The SMMT lists the ongoing semiconductor shortage as the principal cause of the downturn, highlighting various resultant production-line stoppages and output restrictions as manufacturers struggled to obtain the necessary chips – thousands of which go into the average car.
Compounding that issue were cross-industry staff shortages arising from workers having to self-isolate after a positive Covid-19 test and enforced showroom closures at the beginning of the year meaning domestic demand was substantially lower for around three months.
There were a number of more positive trends, however, that give the SMMT "grounds for optimism" as 2022 begins, chief among which is a significant uptick in the number of electrified cars built in the UK.
Production of battery-electric cars (including the Nissan Leaf and Mini Electric) soared by 72% year on year, while increases in plug-in hybrid and hybrid car production had electrified cars account for a record 26.1% of all cars built in the UK last year.
The increasing popularity of electrified cars was matched by significant investment in various projects to support the industry's switch to zero-emissions powertrains.
The proposed new battery factory at Coventry Airport alone accounts for nearly half of the total £4.9bn invested into automotive programmes last year, while there were substantial commitments made by Ford, Stellantis and other international manufacturers on the future of their UK factories.
It was a good year for the “small-volume, high-luxury premium vehicle” segment as well, SMMT chief executive Mike Hawes observed, while noting that the UK industry’s “diversity between high-value, luxury, sports performance and volume” cars means “every company is affected in a slightly different way” by the semiconductor shortage.
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