The global shortage of semi-conductors and the impact of the war in Ukraine led to a “volatile” April for the UK car industry, with production down by over a tenth compared with the same month last year, figures show.
A total of 60,554 cars were built, 11.3% fewer than last April, according to figures from the Society of Motor Manufacturers and Traders (SMMT). Other issues included vehicle model changes and broader industry structural changes, said the organisation.
Production for overseas markets fell by 20.8%, driven by a 68% decline in shipments to the US and a 10.4% drop to Asia. Three out of five cars exported from the UK last month headed to the EU, representing a 5% increase in shipments, while production for the UK grew for the second month in a row, up by 60%.
This huge rise was mainly the result of new models becoming available, compared with April 2021 when the economy was restarting after lockdown, with demand subdued.
The SMMT said its figures showed that, despite the tough economic climate, UK car makers continue to shift focus towards the latest battery electric, plug-in hybrid and hybrid vehicles. More than one in four cars made in April was electrified, up 2.1% on the same month a year ago.
Mike Hawes, SMMT chief executive, said: “The UK car industry is exposed to a host of issues that are undermining output and competitiveness. Global chip shortages and supply chain disruption are exacerbated by spiralling energy costs, additional trading costs and slowing global markets.
“The foundations of the sector are strong and the transition to zero and ultra-low emission vehicles continues apace, but we need more policies and measures that support manufacturing and encourage investment into the UK at this most challenging of times.”
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