Auto production has continued to surge, but the industry’s recovery from the pandemic is being hampered by a global shortage of supplies such as semiconductors, new research shows.
Almost 55,000 cars left UK factories in May, compared to just 5,314 in the same month last year, but still over 50% fewer than in May 2019.
The Society of Motor Manufacturers and Traders (SMMT) said UK factories have built 429,826 cars so far this year, 105,063 more than in 2020, but total production remains 22.9% below the same five-month period in 2019.
More than one in five vehicles with alternative drives built this year now accounts for more than one in five cars, with each 16 being battery-electric vehicles.
The SMMT said the numbers showed the extent of the challenge the industry faces as it tries to recover from the pandemic while grappling with global supply shortages, particularly in semiconductors.
Electrified vehicle production is increasing, while auto production in general remains export-oriented, with 83.6% of all cars built in 2021 being shipped overseas.
The European Union remains the top destination for British cars with 56% of all exports, followed by the US (18.3%) and China (7.3%).
Mike Hawes, CEO of SMMT, said, “The numbers for May continue to look inflated compared to the near-complete shutdown of production lines last year.
“However, the recovery in auto production is still being massively hindered at home and abroad by global delivery bottlenecks, especially for semiconductors.
“Therefore, if the UK is to remain competitive, it needs to have a globally attractive policy framework for both vehicle production and the supply chain.
“Accelerating zero-emission car production is part of this package. So while every fifth model made here this year is fueled alternately, we need to drive investment in research and development, charging infrastructure and the market to ensure we can deliver the net-zero future society demands. “
An economics spokesman said: “We are committed to ensuring that the UK continues to be one of the best places in the world to manufacture automobiles and we are doing everything we can to protect and create jobs.
“We are ensuring a competitive future for the sector through an extensive investment program of up to £ 1 billion to support electrification of the automotive supply chain, including the development of giant factories in the UK.”
