UK automobile manufacturing fell -27.3% in January to 86,052 items, in response to the newest figures issued at the moment by the Society of Motor Producers and Merchants (SMMT). With a fall of 32,262, this was the worst January efficiency since 2009, and a seventeenth consecutive month of decline.1 A number of elements, together with the continuing results of the pandemic, world provide chain points, prolonged shutdowns and friction within the new buying and selling preparations following the tip of the Brexit transition interval, affected output.
Automotive manufacturing for each house and abroad markets was down, to 16,692 and 69,360 items respectively, representing falls of -18.3% and -29.1%. Whereas exports nonetheless accounted for greater than eight in 10 of all vehicles made within the month, shipments to main markets the EU, US and Asia all fell by double digits, down -26.2%, 34.5% and -36.1%.
In higher information, the expansion in UK manufacturing of battery electrical (BEV), plug-in hybrid (PHEV) and hybrid autos (HEV) seen in 2020 continued, with mixed output of those autos rising 18.9% in January to 21,792 items. This implies multiple in 4 (25.3%) of all vehicles leaving manufacturing unit gates was alternatively fuelled, additional proof of the UK’s rising functionality in ultra-low and nil emission automobile manufacturing.
The information comes because the sector counts the £11.3 billion price of misplaced automobile manufacturing since March 2020.2 While manufacturing companies stay open, weak demand hindered by the continuing closure of latest automobile showrooms is affecting manufacturing volumes. SMMT is, subsequently, urging the Chancellor to make use of subsequent week’s Finances to announce measures that improve UK automotive manufacturing competitiveness, with an extension of Covid-19 enterprise assist schemes together with the CJRS furlough, amendments to enterprise charges reform to incentivise manufacturing funding and extra assist for abilities and coaching.
Mike Hawes, SMMT Chief Government, stated,
Yet one more month of decline for UK automobile manufacturing is a grave concern and subsequent week’s Finances is the Chancellor’s alternative to spice up the trade by introducing measures that can assist competitiveness, jobs and livelihoods. While there have been some very welcome latest bulletins, we have to safe our medium to long-term future by creating the circumstances that can entice battery gigafactory funding and remodel the availability chain. Most instantly, nevertheless, we should get our Covid-secure automobile showrooms again open, ideally earlier than 12 April. This would be the quickest method to UK automotive manufacturing restoration.
1: January 2009 UK automobile manufacturing 61,404
2: SMMT calculations
SOURCE: SMMT
