UK car production rebounds for April but continues to stumble

UK car production rose significantly for April 2021 but still remains short of recovery according to the latest data from the Society of Motor Manufacturers and Traders (SMMT).

Production continues to fall short of recovery as numbers remain below 2019 levels, even as the lockdowns restrictions that have stunted growth over the past year continue to be eased. Production has seen a 3.8% drop on 2019 levels.

April 2021 saw 68,306 vehicles made compared with the 197 for the same period in 2020, when the effects of the first lockdowns effectively halted manufacturing in a number of sectors.

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So far, UK factories have pumped out 374,864 cars, offsetting earlier declines to mark a 17% increase on the first four months of 2020, but still marking a roughly 15% decrease on the same four months in 2019, the SMMT claims.

However, when compared to the five-year average, numbers are down 42.9% for the month and 31.1% for the period from January-April.

Year-to-date production of commercial vehicles increased by 4.2% driven largely by an increase in domestic demand.

The figures for the month also reflect the UK automotive sectors swift shift towards increased electrification.

In April, 22.8% of all UK car manufacturing was for battery-electric, plug-in hybrid and hybrid cars, while in the year-to-date alternatively fuelled model production is up 33.1% on the same period in 2019, demonstrating the UK industry’s commitment to meeting the demand for these ultra-low and zero-emission vehicles. 

Many global automakers have also faced production delays owing to the ongoing semiconductor shortage, which may be going someway to hinder electrification efforts.

When compared with 2020, since January, production for the UK market has declined 3.1% while car exports have risen 22.5% with more than eight in every ten cars made shipped overseas.

As a result, the European Union remains one of the largest markets for UK vehicle exports, operating a 52.1% market share, followed by the US and China.

However, continued lockdown measures across some EU member states has driven exports of commercial vehicles down by 6.7%, the SMMT suggests.

“April’s figures were always going to be exceptional as factories were closed at this time last year amid the first wave of the pandemic," said Mike Hawes, the SMMT's chief. However, the situation for UK car manufacturers remains challenging, particularly with the worldwide shortage of semiconductors affecting output."

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He added the UK will need a "strong export market" and competent Covid recovery to drive demand going into the future.

He concluded: "However, the situation for UK car manufacturers remains challenging, particularly with the worldwide shortage of semiconductors affecting output."

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