Car sales to 65 years low

Factories turned out 64,729 vehicles last month, down by 41.4 per cent compared with a year ago, in what were "historically poor production numbers", according to the SMMT. (Society of Motor Manufacturers and Traders).

The SMMT believes factories are on track in 2021 to produce fewer than one million vehicles for a second consecutive year before getting back above the one million level next year and rising to a potential 1.2 million in 2024.

Overall production for the UK market was down 38 per cent; new cars going abroad dropped by 42 per cent.

The SMMT's latest figures show production this year is almost 3 per cent lower than 2020, at 721,505 cars.

"With Covid resurgent across some of our largest markets and global supply chains stretched and even breaking, the immediate challenges in keeping the industry operational are immense."

According to SMMT's Chief executive Mike Hawes, those measures could include "tackling high energy costs, supporting employment and training, and helping businesses whose cash flow is under pressure",

He described carmakers as "resilient" but said they were battling a series of challenges.

Carmakers have been struggling with a severe shortage of microchips as semiconductor producers shifted during the pandemic to satisfy the demand for consumer electronics.

Car production slumped by 40 per cent in Britain last month as manufacturers grappled with a shortage of semiconductors on top of disruption caused by the Covid pandemic. About 60 per cent went to the EU, with that business supported by the deal struck last year allowing the car trade with Europe to be tariff-free.

The sector is calling for assistance from the government to help ease the burden and enhance companies' ability to compete with foreign rivals.

It was the fourth monthly drop in a row and contributed to the weakest October output since 1956, according to the Society of Motor Manufacturers and Traders (SMMT).

Summarised www.sba.tax

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