Continuing disruption to global supply chains has led to a downgrading of the car industry’s production outlook The UK car industry will not be able to produce a million vehicles per year, as previously expected, until 2025, due to continuing shortages of essential parts.which are used across car electronics, and supply chain issues made worse by the war in Ukraine have held up production lines.
As a result, car production in the UK fell 19.2 per cent in the first six months of the year, as these shortages collided with structural changes within the industry. Some 95,792 fewer vehicles were produced by UK manufacturers in the first half of 2022 compared with the previous year, figures from theThis represents the weakest first half since the pandemic-ravaged 2020 and worse than 2009 when the global financial crisis decimated demand, the industry body said., supply chain disruption caused by trade disagreements and the war in Ukraine, as well as higher demand for computer graphics cards and other components has led to a shortage of semiconductor chips.
The problem is unlikely to be improved anytime soon as the chief executive of tech firm Intel warned thatA range of “significant structural and model changes within the sector” also cut back car production, the SMMT said.The annual decline in production was driven largely by a drop in export volumes, with