2021.07.2906:20:00UTC+00UK Car Production Remains Weak On Supply Shortages: SMMT

Although UK car output increased in June from the Covid-depressed June 2020, it was the worst June total since 1953 as the global chip shortage continued to take a toll on production, the Society of Motor Manufacturers and Traders, or SMMT, said Thursday.

In June, car production totaled 69,097 units, up 22.1 percent from the same period last year.

Factories turned out 498,923 cars in first half of year, down -38.4 percent on five-year average. The sector rounded off a turbulent first six months with the pandemic, new trading rules with Europe and supply issues causing ongoing challenges.

The forecast suggested that global chip shortage could negatively impact planned UK production volumes by up to 100,000 units.

Despite the easing of Covid restrictions, manufacturers experienced staff shortages due to self-isolation arising from notification of contacts outside the workplace. This is another drag on the sector's recovery.

"While the UK automotive industry continues to suffer the effects of the global pandemic, with first half year production down significantly and a tough few months looming, the sector has the capability to recover," Mike Hawes, SMMT chief executive, said.