UK car makers report worst November figures since 1984

The massive drop in demand for vehicles overall happened despite a rush for electric cars

Britain's car manufacturing industry reported the lowest figures for November output in nearly 40 years. Reuters

Britain’s car manufacturing industry experienced its worst November performance in almost four decades when demand for vehicles plummeted last month.

It marked the fifth consecutive month of decline, dropping 28.7 per cent to 75,756 units, the worst figure seen for the month since 1984, the Society of Motor Manufacturers and Traders (SMMT) said.

The plummeting figures came despite a surge in demand for battery electric vehicles which saw orders jump by more than 50 per cent. Many drivers believe swapping diesel models for green energy cars is an important step to avoid a climate change catastrophe.

The month’s low overall figures were also linked to the closure of a major car factory in the summer, which will impact year-on-year comparisons until next July.

Swindon's Honda plan closed after 36 years, causing more than 3,000 people to lose their jobs.

Production for domestic vehicles declined 18.8 per cent last month, while the figure for the overseas market fell by 30.4 per cent.

But British production of battery electric, plug-in hybrid and hybrid cars took a record share, accounting for around a third of all cars made in November and more than a quarter throughout the year to date.

Battery electric vehicle output, in particular, was up in November by 52.9 per cent to 10,359 units, hitting a new high of 13.7 per cent of all production, more than double the level a year ago.

In the year to date, UK car plants have produced 797,261 units, some 432,794 fewer compared to 2019 and 667,441 off the five-year pre-Covid average.

Mike Hawes, SMMT chief executive, called the numbers “incredibly worrying” and said they highlighted the “severity of the situation facing the automotive industry”.

“Covid is affecting supply chains massively, causing global shortages — especially of semiconductors — which is likely to impact the sector throughout next year,” he said.

“With an increasingly negative economic backdrop, rising inflation and Covid resurgence home and abroad, the circumstances are the toughest in decades.

“With output massively down for the past five months and likely to continue, maintaining cash flow, especially in the supply chain, is of vital importance. We have to look to the government to provide support measures in the same way it is recognising other Covid-impacted sectors.

“The industry is as well prepared as it can be for the implementation of full customs controls at UK borders from January 1 but any delays arising from ill-prepared freight or systems will place further stress on businesses that operate ‘just in time’. Should any problems arise, contingency measures must be implemented immediately to keep cross-border trade flowing smoothly.”

The surge in demand for electric vehicles coincided with Britain’s hosting of the Cop26 United Nations climate change summit in Glasgow.

World leaders gathered to reach agreements on how to slow down the effects of climate change and save the planet from further damage.

One of the key outcomes of the conference was the announcement from the newly established Glasgow Financial Alliance for Net Zero of £96 trillion ($130 trillion) of private capital to accelerate the transition to a net-zero economy.