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SMMT: UK automotive manufacturing falls for eighth consecutive month as world chip scarcity persist

SMMT: UK automotive manufacturing falls for eighth consecutive month as world chip scarcity persist

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UK automotive manufacturing fell -41.3% in February, with 61,657 models made, in response to the most recent figures launched at present by the Society of Motor Producers and Merchants (SMMT). 43,351 fewer automobiles had been made than in the identical month in 2021, primarily because of the persistent world scarcity of semiconductors inflicting some factories to pause manufacturing, and … Continued

UK automotive manufacturing fell -41.3% in February, with 61,657 models made, in response to the most recent figures launched at present by the Society of Motor Producers and Merchants (SMMT). 43,351 fewer automobiles had been made than in the identical month in 2021, primarily because of the persistent world scarcity of semiconductors inflicting some factories to pause manufacturing, and the lack of output following the closure of a significant plant in Swindon final summer season.

In what was the weakest February for UK automotive makers since 2009, manufacturing declined for each the home and abroad markets, down -35.8% and -41.8% respectively.1 Exports accounted for greater than eight in 10 automobiles made, with nearly all of shipments (62.4%) heading into the European Union, equal to 31,673 models. The US, as compared, took 11.0% of exports, and China 8.7%.

UK manufacturing of the most recent electrified automobiles continued apace with plug-in hybrids, hybrids and battery electrical automobiles mixed representing greater than 1 / 4 (25.8%) of all manufacturing within the month, or 15,905 models. The information comes after recent SMMT evaluation revealed this week revealed some £10.8 billion has been dedicated to UK electrical automobile manufacturing and gigafactories since 2011.2

This funding has resulted within the manufacturing of virtually 1 / 4 of 1,000,000 alternatively fuelled automobiles over the previous decade, however recent commitments to home battery manufacturing are actually important if volumes are to develop additional. The present trajectory goals to spice up capability to 41GWh by 2027 however, if the UK is to supply round a million electrical automobiles a 12 months, 60GWh might be wanted. This underscores the significance of making beneficial funding situations for the sector, notably when it comes to entry to expert labour, aggressive fiscal regimes and – most urgently – competitively priced clear vitality.

Mike Hawes, SMMT Chief Govt, stated,

The automotive business is present process its most radical transformation in additional than 100 years, however producers are concurrently dealing with probably the most excessive working situations as world financial headwinds drive up prices and constrain provide. The sector entered 2022 longing for restoration, however that restoration has not but begun, and pressing motion is now wanted to assist mitigate spiralling vitality prices and make sure the sector stays globally aggressive to encourage the funding important to development, job safety and the supply of internet zero ambitions.

In opposition to an already powerful financial backdrop, the Russian state’s invasion of Ukraine on the finish of February represents an extra problem for the UK automotive sector. Though, in 2021, Russia took simply 1.1% of UK automotive exports and Ukraine simply 0.5%, many essential uncooked supplies, components and elements, together with aluminium, palladium and nickel, which is utilized in battery manufacturing, and wiring harnesses, are sourced from the area. The sanctions imposed are supported by the business however elevate further challenges to the sector within the medium to long-term.

SOURCE: SMMT

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