The lowest car production in the UK since October was due to a shortage of chips

LONDON (Reuters) – Car production in the UK fell 41.4% year-on-year last month from its lowest level in October to 1956, due to a shortage of semiconductor chips and the closure of factories, according to a commercial industry organization.

A total of 64,729 cars were removed from UK production lines, SMMT Motor Manufacturers and Traders data showed on Friday.

The fall reflected global supply chain problems and Honda’s final closure at the end of July.

There were 721,505 vehicles in the first 10 months of the year, 2.9% less than in 2020 when the sites were closed for a month when the coronavirus pandemic hit the UK.

Year-on-year production of cars and vans will be less than 1 million for the second year in a row, but is expected to return above that level in 2022, SMMT said, citing an independent forecast by AutoAnalysis.

“The UK automotive sector is resilient, but as COVID spreads and breaks in some of our largest markets and global supply chains, the immediate challenges of keeping the industry running are tremendous,” said Mike Hawes, SMMT CEO.