British car manufacturers saw their slowest rate in November in 37 years as the sector struggled to deal with the impact of the coronavirus pandemic on global supply chains, industrial data showed on Thursday.
The Association of Automobile Manufacturers and Traders (SMMT) said vehicle production fell 28.7% compared to November 2021 to 75,756 units, despite the increase in electric vehicle production by 53%.
This was the fifth straight month of declines and marked the worst November performance since 1984.
Some of the decline was due to the permanent closure of the Honda car plant in July, but SMMT CEO Mike Howes said the numbers were “extremely worrying” and underlined the severity of the situation in the industry.
In the first 11 months of 2021, British car production of just under 800,000 units fell by 433,000 compared to 2019, before the pandemic hit.
“Coronavirus is impacting supply chains significantly, causing global shortages – particularly in semiconductors – which is likely to affect the sector throughout the next year,” Howes said.
Hawes said the risks of a new economic slowdown caused by the Omicron variant of the coronavirus and rising inflation represent the toughest business environment in decades.
“We have to look to the government to provide support measures in the same way it recognizes other sectors affected by COVID,” he said.
Britain on Tuesday announced an additional £1 billion in support for hospitality and leisure companies hit hard by Omicron.
Howes said Britain’s car industry is as well prepared as it is to implement full post-Brexit customs controls at the UK’s borders from January 1, but any delays will put more pressure on timely operations.
“If any problems arise, emergency measures should be implemented immediately to keep cross-border trade flowing smoothly,” he said.
MI