UK Car Production DOWN by 41.3% in February as ‘Chips’ shortage continues

Car production in the UK fell again in February – the eighth drop in a row – as the global ‘Chip’ shortage continues to bite.

Despite the economic woes in the UK caused, in the main, by soaring fuel prices, demand for new cars remains strong. Unfortunately, supplying that demand isn’t straightforward with the world still suffering a shortage of ‘Chips’, so vital for modern cars, caused by huge demand during the pandemic.

With that in mind, it’s no great surprise that car production in the UK fell once again in February – the eighth drop in a row – this time by a whopping 41.3 per cent, the lowest February production total since 2009.

UK car factories managed to build 61,657 cars in February, a drop of 43,351 on the February figure for last year (2021), of which 25.8 per cent were either BEVs, PHEVs or Hybrids. Although that figure is a bit skewed by car makers prioritising electrified models (and high-margin builds).

Of the 61,657 cars produced last month, more than 80 per cent were exported, with 62 per cent heading for Europe.

Of course, February production wasn’t hampered by the situation in Ukraine, but although very few cars are exported to Russia or Ukraine the car industry does rely on the region for stuff like wiring harnesses and critical raw materials. So expect that to start impacting on March’s figures.

SMMT’s Mike Hawes said:

The automotive industry is undergoing its most radical transformation in more than a hundred years, but manufacturers are simultaneously facing the most extreme operating conditions as global economic headwinds drive up costs and constrain supply. The sector entered 2022 hopeful for recovery, but that recovery has not yet begun, and urgent action is now needed to help mitigate spiralling energy costs and ensure the sector remains globally competitive to encourage the investment essential to growth, job security and the delivery of net zero ambitions.