Auto production in the UK has continued to fall as manufacturers grapple with global supply chain issues.
In the first three months of 2022, almost 100,000 fewer cars were built compared to the previous year.
Production has fallen by almost a third, according to the Society of Motor Manufacturers and Traders (SMMT).
The SMMT linked the decline to a global shortage of computer chips and rising energy costs for manufacturers.
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A total of 207,347 new cars were built in the UK in the first three months of the year, up from 306,558 in the same three months of 2021 when the pandemic put additional pressure on manufacturers.
Manufacturers are struggling to get the parts they need – particularly semiconductors or computer chips, which are widely used in modern vehicles.
The closure of Honda’s Swindon plant last year was also a major factor and has contributed to a sharp drop in the number of cars exported to the US. Exports to the US saw the biggest drop last month, falling 63.8% in March, while exports to the EU fell 24.5%.
The war in Ukraine is also affecting production, with factories struggling to source parts such as wiring harnesses that would normally be sourced locally.
Meanwhile, automakers are increasingly concerned about the impact of rising energy costs.
Mike Hawes, chief executive officer of SMMT, said that two years after the pandemic began, car production “still suffers badly”.
“The recovery has not yet started and against a backdrop of an increasingly difficult economic environment, including escalating energy costs, urgent action is needed to protect the competitiveness of UK manufacturing,” Mr Hawes continued.
“We want the UK to be at the forefront of the transition to electrified vehicles, not just as a market but also as a manufacturer, so urgent action is needed if we are to secure jobs and livelihoods,” he added.
Responding to the figures, Chris Knight, automotive partner at consultancy KPMG, said challenges in the availability of components and materials remain, with the problems caused by the pandemic now “added by the conflict in Ukraine”.
“The focus on prioritizing available components and materials for higher margin vehicle production and sales has been detrimental to some parts of the fleet industry,” added Mr. Knight.
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