The British car industry has reported its lowest output figure since the days of the Morris Minor and the Ford Prefect. Production in July stood at just 53,438 vehicles, the lowest reported July level since 1956. The sector has been hit by issues surrounding the pandemic and the global shortage of semiconductor chips. 

An increase in coronavirus cases in the UK last month, meant that thousands of workers were instructed to self isolate causing staffing issues at some plants. While this situation is expected to ease as rules become less strict, the global chip shortage is likely to impact the industry well into next year and possibly beyond. 

More than a quarter (26.0%) of all cars made in July were either battery electric (BEV), plug in hybrid (PHEV) or hybrid electric (HEV), their highest share on record. Production overall remains up 18.3% on Covid hit 2020 at 552,361 units, but this is down significantly (-28.7%) on 2019 pre-pandemic levels when 774,760 cars rolled off production lines.

Mike Hawes, SMMT Chief Executive, said, “These figures lay bare the extremely tough conditions UK car manufacturers continue to face. The UK automotive industry is doing what it can to keep production lines going, testament to the adaptability of its workforce and manufacturing processes, but Government can help by continuing the supportive Covid measures currently in place and boosting our competitiveness with a reduction in energy levies and business rates for a sector that is strategically important in delivering net zero.”