UK car production in November worst in 37 years. And woes are likely to persist
- Car production has been falling consistently and November for the fifth consecutive month of declining numbers in the UK.
Car production in the United Kingdom has slowed down to near record levels with November output figures last seen 37 years ago, in 1984. Just 75,756 units were manufactured last month despite a larger role played by electric vehicles.
A large part of the blame for the slowdown in car plants in the UK is directed towards global supply chain troubles and the Covid-19 pandemic. While UK has been reporting a surge in Omicron variant cases of Covid-19, the shortage in several key parts are also creating bigger challenges for the auto industry here.
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Car production has been falling consistently and November for the fifth consecutive month of declining numbers. It was also the worst November in terms of output since 1984.
The first 11 months of 2021 saw output of around 800,000 car units, down by 433,000 when compared to figures from the first 11 months of the pre-pandemic year of 2019.
Challenges remain but will these get bigger?
The road ahead is likely to be fraught with similar challenges with normalcy unlikely to return till at least the end of the first quarter of 2022. While economic experts point towards rising inflation, health authorities are pointing towards the rising number of Covid-19 cases. Both are intertwined with the pandemic once again threatening to slow down the country's economy.
For an industry that has already been gearing up from the fallout of Brexit, the drive through choppy waters is more than likely to continue.
The global outlook is hardly much better as the automotive industry the world over isn't exactly celebrating a new year filled with promise. While demand for vehicles has gone up in many countries in America, Europe and even Asia, a wide variety of factors dull hopes for production and supply.