Chip shortages sees UK Sept car production hit lowest level in 40 years

UK car production fell for the third month in a row, hitting its lowest level in four decades, industry data revealed on Thursday.

A total of 67,169 cars were produced in Britain last month, down 41.5% year-on-year and the lowest since September 1982, the Society of Motor Manufacturers and Traders (SMMT) said, in what it called a "worrying trend".

Car makers are struggling globally with a shortage of semiconductors as the industry tries to recover from the slump last year as the Covid pandemic battered demand.

Around one in 10 automotive firms have made redundancies or restructured their businesses as a direct result of the lack of semiconductors, said the SMMT.

Exports to the European Union dropped by a third last month, as cars exported to Turkey, Australia, and the US also fell.

However, production of electric and hybrid cars continued to break records, the SMMT said, and now represented almost a third of all cars made as people look to make the switch.

"The substantial decline in UK car output in September continues the worrying trend we have seen over the past three months,” said SMMT chief Mike Hawes.

"The industry is continuing to battle the effects of the pandemic with the shortage of semiconductors stalling production.”

"Whilst there was welcome news in the Budget to support the transition to zero emission vehicle production, battery manufacturing and supply chains, it missed the opportunity to offer meaningful short-term support given Covid-related supply constraints and rising energy bills.”