UK car production declined -19.2% in the first six months of the year, according to figures published today by the Society of Motor Manufacturers and Traders (SMMT), with 95,792 fewer vehicles built compared with the same period in 2021. 403,131 units were built, representing the weakest first half since the pandemic-ravaged 2020 and worse than 2009 when the global financial crisis decimated demand.1 The main cause remains shortages of key components, most notably semiconductors, exacerbated by additional supply issues caused by the war in Ukraine, as well as significant structural and model changes within the sector. Despite car production decreasing overall this year, significant investment into the UK industry is being made, with more than £3.4 billion announced so far in 2022, primarily for EV production and supply chains. This investment will provide a significant boost to the UK and local economies, creating and safeguarding jobs in a sector that is pivotal to the UK’s net zero goal. * Data Source SMMT
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