Chips shortage halves UK car output

June 28, 2021
Chips shortage halves UK car output
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Global vehicle production continues to be reduced by the shortage of semi-conductors, with recent figures for the UK showing that output in May was half of the corresponding pre-pandemic levels in 2019.


Society of Motor Manufacturers and Traders (SMMT) figures show that May 2021 UK output was only 54,962 cars, 53% down on May 2019.

SMMT chief executive, Mike Hawes, says the global semiconductor crisis is one of the key reasons for this decline. Currently chips are in short supply and priority is being given to the IT and smartphone companies who are traditionally the semi-conductor manufacturers biggest customers. Other components also remain hard to source because of raw material shortages and shipping problems. Mike Hawes commented, “Car production is massively challenged here and abroad by global supply shortages, particularly semiconductors.”

While lower than normal, UK production figures also reflect current automotive trends with 19% of cars being electric or hybrid, with pure electric accounting for 6%.
 
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