As a result of a chip shortage and a pingdemic, UK automakers have had their worst July performance in 65 years.


As a result of a chip shortage and a pingdemic, the UK auto industry has had its worst July in 65 years.

After only 53,438 cars were produced – the fewest since 1956 – the Society of Motor Manufacturers and Traders is calling for government action.

Due to a global microchip shortage and employee absences due to the pingdemic, British automakers produced the fewest cars in July in 65 years.

The Society of Motor Manufacturers and Traders (SMMT) reported that only 53,438 cars were manufactured in July 2021, a decrease of more than 37% from the same month the previous year and the lowest since July 1956.

According to the SMMT, a shortage of microchips – which are widely used in modern vehicles to power things like visual displays – has hampered production, while staff absences due to coronavirus alerts have exacerbated a labor shortage.

In more upbeat news, the SMMT reported that more than a quarter (26%) of all cars produced in July were battery electric, plug-in hybrid, or hybrid electric, the highest percentage on record.

Since the beginning of the year, UK automakers have produced 126,757 “greener” vehicles, which will become increasingly important as the industry and the country prepare to meet future climate change targets.

Overall, car production in 2021 is up 18.3% year-to-date compared to Covid-hit 2020, at 552,361 units.

However, it is down 28.7% from pre-pandemic 2019, when 774,760 cars were produced.

The figures “lay bare the extremely tough conditions that UK car manufacturers continue to face,” according to Mike Hawes, chief executive of the SMMT.

“While the pingdemic’s impact will fade as self-isolation rules change, the global semiconductor shortage shows no signs of abating,” he added.

“The UK automotive industry is doing everything it can to keep production lines running, demonstrating the adaptability of its workforce and manufacturing processes. However, the government can help by maintaining the supportive Covid measures currently in place and boosting our competitiveness with a reduction in energy levies and business rates for a sector that is strategically important in achieving net zero.”

The data comes after some of the world’s largest automakers announced earlier this month that they would be cutting production.

Toyota plans to cut global production by 40% in September, owing to a microchip shortage, while Volkswagen said the same problem could force it to shut down production lines in the fall.

As a result of a chip shortage and a pingdemic, UK automakers have had their worst July performance in 65 years.

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UK car makers suffer worst July performance for 65 years as chip shortage and pingdemic bite

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