UK April car production falls 11%

London – Car production in the UK fell 11.3% year-on-year in April with 60,554 units rolling off factory lines, according to the latest figures released today by the Society of Motor Manufacturers and Traders (SMMT).

The ongoing global shortage of semi-conductors, the impact of the war in Ukraine on supply chains, model changes and broader industry structural changes all contributed to a volatile month’s output, SMMT announced 26 May.

These factors also had a significant effect on year-on-year export comparisons, with the permanent closure of Honda's Swindon plant last year still impacting export figures, particularly to the US.

According to SMMT, over 7,700 fewer cars were made in the month compared to the year before and the total was 14.7% below the April 2019 pre-pandemic level.

The 2019 figure, the association noted, was itself down 44.5% on April 2018, due to shutdowns rescheduled to mitigate against the possibility of a no-deal Brexit.

Production output for overseas markets fell by 20.8%, driven by a 68.0% decline in shipments to the US, and a 10.4% drop in those to Asia.

However, six-in-10 cars exported headed to the EU, representing a 5.0% uplift in shipments, while production for the UK grew for the second month in a row, up 60.1% compared to last year.

The substantial rise in the UK was primarily the result of new models coming to market, and also due to the low comparison base of 2021.

“The UK car industry is exposed to a host of issues that are undermining output and competitiveness.

“Global chip shortages and supply chain disruption are exacerbated by spiralling energy costs, additional trading costs and slowing global markets,” said Mike Hawes, SMMT chief executive.

While the foundations of the sector are strong, Hawes called for more policies and measures that support manufacturing and encourage investment into the UK.