The ongoing semiconductor shortage continues to ravage the automotive industry. In the UK, car production has declined by a staggering 50%…

Semiconductor Shortage Continues 

New data from the Society of Motor Manufacturers and Traders (SMMT) has revealed just how devastating the semiconductor shortage has been for the British automotive industry. For instance, when compared to a five-year average, car production in the UK was down by 58% in May and 36.3% between the January – May period. Every car and van manufacturer has been affected the global shortage of circuitry, with some delivery times being delayed by as much as six months. 

The shortage of semiconductors is just the latest of a long series of disasters for ailing automotive industries; many of which are still recovering from Brexit and coronavirus-related challenges. It’s also jeopardising long-term recoveries. Some 54,962 cars rolled off of British production lines in May; up from 5,314 in 2020. But this figure is still well below pre-pandemic levels. 

‘Massively Challenged’ 

Mikes Hawes, chief executive at the SMMT, commented on the latest production data. He said, “May’s figures continue to look inflated when compared to last year’s near total standstill of production lines. The recovery of car production is, however, still massively challenged here and abroad by global supply shortages, particularly semiconductors”. He added, “if the UK is to remain competitive, therefore, it must ensure it has a globally attractive policy framework for both vehicle production and the supply chain”. 

In addition, Hawes emphasised the need to accelerate the production of zero emission vehicles, drive up investment in research and development and roll out more charging infrastructure for EVs across the country. In the meantime, both fleet decision-makers and consumers can expect historic waits when purchasing new vehicles. 

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