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It’s the first drop since February, and the worst July since 1956.
The fall was driven by several factors: the global shortage of semiconductors, staff absences due to being ‘pinged’ by the Covid app, and changes to the timings of some summer shutdowns in response.
Only 8,233 cars were built for the UK market in July, a 38.7 per cent drop, while there was a similar fall in cars for the export market, down 37.4 per cent to 45,205.
On the plus side, however, more than a quarter of the cars made in the UK in July were either battery electric, plug-in hybrid or hybrid electric, the 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.
“These figures lay bare the extremely tough conditions UK car manufacturers continue to face,” says Mike Hawes, SMMT chief executive. “While the impact of the ‘pingdemic’ will lessen as self-isolation rules change, the worldwide shortage of semiconductors shows little sign of abating. 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.”
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