Automotive manufacturing in Britain fell by 27% year-on-year to 37,200 automobiles in August, in accordance with the British Society of Producers and Sellers of Vehicles (SMMT).
Whereas the manufacturing of vehicles for the home market over the previous month barely elevated by three.three%, export car manufacturing fell dramatically by 32.5%. Round 29,200 vehicles assembled within the UK had been shipped abroad, with exports to main markets together with Australia, the US and China down over 50%. Exports to the EU had been in higher form, representing practically seven in each 10 vehicles exported in August, however nonetheless slid four.9%.
Additionally on rt.com
Semiconductor chip scarcity to value world automakers $ 210 billion this yr – report
The plunge in exports was led to by the persevering with world scarcity of semiconductor chips resulting in manufacturing disruptions, in addition to some carmakers’ summer time manufacturing unit shutdowns.
Nonetheless, for the reason that begin of the yr, general UK automobile manufacturing is up 13.eight% in comparison with final yr, growing to 589,607 automobiles. This was largely pushed by export-focused manufacturing with 83.2% of vehicles manufactured heading for international markets.
SMMT Chief Government Mike Hawes expects manufacturing constraints to proceed via 2022.
“One other vital decline for UK automobile manufacturing is extraordinarily worrying each for the sector and its many 1000’s of employees nationwide. Whereas not the one issue at play, the affect of the semiconductor scarcity on manufacturing can’t be overstated.
“Carmakers and their suppliers are battling to maintain manufacturing traces rolling with constraints anticipated to proceed properly into 2022 and presumably past,” Hawes stated, as quoted by The Guardian.
Additionally on rt.com
Beijing fines three chip sellers for worth gouging as world scarcity raises prices for automakers
In March, SMMT predicted that automobile manufacturing within the UK would begin its post-pandemic restoration this yr, forecasting 15.eight% progress from 2020 with 1.05 million automobiles and an extra enhance in output to 1.1 million in 2022. Nonetheless, consultants say there may be little probability of the UK reaching the 1.three million manufacturing stage from pre-pandemic 2019 any time quickly.
In the meantime, throughout the Atlantic, US auto gross sales have additionally nose-dived these days, with business estimates predicting a minimum of a 24% decline in September because the chip scarcity continues to disrupt manufacturing worldwide.
For extra tales on economic system & finance go to RT’s enterprise part
