UK car production slumps to lowest level since 1984
Production was down 2.3 percent in December to 71,403 vehicles, with border closures and subsequent part supply problems affecting some manufacturers, including Honda.
Last year, the number of new cars produced in the UK dropped by a third to just under 921,000, the lowest amount since 1984, according to recent industry estimates. Output was 920,928 cars, a 29.3 percent decline on 2019, rounding off a "dreadful year" said Mike Hawes, president of the Society of Auto Manufacturers and Traders. Pandemic-enforced closures of plants and declining market demand meant "in a generation" the worst production, he said. But he said the roll-out of the vaccine and the EU trade agreement had inspired hope for 2021. Output dropped 30.4 percent and 29.1 percent respectively last year for the UK and export markets. Eight out of ten UK-built vehicles are still going overseas, which Mr Hawes said has strengthened the value of tariff-free EU trade. The EU remained the largest export destination for the United Kingdom, with a 53.5% share, despite volumes declining 30.8% to 400,460 units.
Production was down 2.3 percent in December to 71,403 vehicles, with border closures and subsequent part supply problems affecting some manufacturers, including Honda. Last year, exports to the US, Japan and Australia all dropped, down 33.7%, 21.6% and 21.8%, respectively. However, exports to China ended the year by 2.3 percent, and those to South Korea and Taiwan also grew by 3.6 percent and 16.7 percent, respectively, as these nations travelled on different trajectories to cope with the pandemic. The UK continued to roll out battery electric, plug-hybrid and hybrid cars to customers at home and around the world, amid the gloom. These models' combined production grew to 18.8 percent of all cars produced in Britain, up from 14.8 percent a year earlier. Mr Hawes said: "These numbers, the worst in a generation, reflect the devastating impact of the pandemic...
However, the industry faces more optimism in 2021, with a vaccine being rolled out and clarity on how we trade with Europe, which remains our largest market by far." Independent estimates indicate that UK car manufacturing would partially recover to one million in 2021, but Mr Hawes said much will rely on the continued impact of the virus, the pace at which showrooms will reopen, and how quickly manufacturers will come to terms with new EU trade agreements, which he described as much more complicated. He hoped the latest figures represented the "lowest ebb" for the industry, but added that to return to the figure of 1.7 million recorded in 2016, substantial investment would be required.
