London Daily

Focus on the big picture.
Wednesday, Jun 10, 2026

COVID-19: Chip shortage throws spanner in the works as car industry struggles to recover from coronavirus crisis

COVID-19: Chip shortage throws spanner in the works as car industry struggles to recover from coronavirus crisis

The number of cars rolling off UK production lines rose - but only compared with a month last year when plants were shut down.

UK car production remains stuck in the doldrums as chip shortages hamper the recovery from the coronavirus crisis, latest industry data shows.

The number of vehicles made last month was up by 46.6% on the same time last year when plants were forced to shut - but more than a fifth lower than the average for recent years.

A global semiconductor shortage was the most notable of problems faced by manufacturers, according to the Society of Manufacturers and Traders (SMMT), which compiled the figures.

They come a day after it was announced that production of the Mini, which is made in Oxford, would be halted for a few days because of the shortage.

Last week Jaguar Land Rover, Britain's biggest car maker, said production at its plants at Halewood and Castle Bromwich was being suspended temporarily for similar reasons.

The chip shortage has become a global manufacturing issue, with US carmaker Ford saying last night that it could cut production levels by half over the current second quarter.

Meanwhile, tech giant Apple warned that a shortfall could hit iPad and Mac sales by up to $4bn in the current quarter.

The monthly SMMT data showed that 115,498 cars rolled off UK production lines in March, up from 78,767 a year ago and the first year-on-year increase after 18 months of decline.

But the figure compares with a period when, in mid-March 2020, all car plants were forced to shut at the start of the first lockdown.

Over last year as a whole, production fell to the lowest level since 1984 - blamed on the temporary shutdowns as well as Brexit uncertainty and depressed demand.

The latest monthly total is 22.8%, or more than 30,000 vehicles, lower than the average for March over the past five years.

SMMT chief executive Mike Hawes said: "The first rise for UK car production since summer 2019 is a major step in the right direction but belies the underlying situation.

"With factories shut for much of March 2020, output was always going to be up but it remains below average, with some £11bn worth of production lost over the past year.

"Whilst the COVID situation is improving in the UK and in some major export markets, manufacturers are still struggling to manage residual issues, most notably the global semiconductor shortage."

The figures also highlighted the shift from traditional diesel and petrol cars to battery electric and hybrid vehicles, with more than one in five cars made in the UK now "alternatively fuelled".

A survey by the SMMT also pointed to the pressures facing the sector following the end of the Brexit transition period.

It showed that 91% were spending more time and resources managing trade with the EU - the biggest market for UK-made cars - than they did last year.

Comments

Sid 5 year ago
Boy that 1953 chev you have is now worth more everyday

Newsletter

Related Articles

0:00
0:00
Close
Farmers Warn of Crop Losses Following Months of Unseasonal Rainfall
Civil Aviation Authority Launches Review of Regional Airport Operations
Met Office Issues Heat-Health Alert Across Parts of England
National Grid Introduces New Measures to Protect Winter Energy Supply
Northern England Rail Upgrades Receive Additional Government Funding
Wales Advances Green Hydrogen Strategy to Decarbonize Heavy Industry
UK Expands Recruitment Incentives to Address Shortage of STEM Teachers
High Court Opens Door to Climate Liability Claims Against Major Industrial Emitters
Police Service of Northern Ireland Investigates Major Personnel Data Breach
Defense Ministry Overhauls Procurement System to Accelerate AUKUS Submarine Program
Net Migration Remains Above Government Expectations, New Data Shows
UK and Scottish Governments Agree Framework for Expanded North Sea Wind Development
UK Treasury Launches New Tax Incentives to Boost AI and Semiconductor Investment
Bank of England Signals Continued Caution on Interest Rate Cuts
UK Unveils £10 Billion NHS Digital Modernization Plan Centered on AI Integration
Nebius Opens Major Robotics and Physical AI Laboratory in London
Bank of England Data Shows Strong Rise in New Mortgage Approvals
Network Rail Completes Landmark Upgrade of Severn Tunnel Rail Infrastructure
East West Rail Passenger Services Between Oxford and Milton Keynes Set for December Launch
GlaxoSmithKline Reportedly Pursues £7 Billion Acquisition of US Cancer Drug Developer Nuvalent
Bank of England Signals Interest Rates Likely to Remain Unchanged Despite Energy Market Risks
NHS Trusts Launch Job-Cutting Programmes as Financial Pressures Intensify Across England
More Than 130 Labour MPs Urge Ban on Trade With Israeli Settlements
Keir Starmer Orders Technology Firms to Introduce Smartphone Nudity Controls for Under-18s
UK Unveils £400 Million National AI Supercomputer Fund and New Economics Institute
Japanese Technology Firm Fujitsu Launches Advanced Artificial Intelligence Tool for Corporate Disclosures
South Africa Officially Launches Nationwide Campaign for Highly Contested Local Government Elections
United Kingdom Commits Additional Funding for Unexploded Ordnance Clearance in Laos
Singapore Announces Stringent New Greenhouse Gas Regulations for Commercial Cooling Systems
Cambodia and Thailand Hold High-Level Border Security Talks at United Nations Headquarters
Myanmar Military Government and China Sign Major Agreement to Upgrade Media and Cultural Cooperation
Knife Attack at Swiss Train Station Leaves Three Injured in Suspected Act of Domestic Terrorism
Transnational Extortion Gang Threatens Canadian Police With Army of One Thousand Armed Operatives
Australia Imposes Forty-Two-Day Quarantine on Cruise Ship Passengers Following Deadly Hantavirus Outbreak
International Monetary Fund Unlocks Seven Hundred Million United States Dollars for Sri Lanka Following Economic Reforms
Australia Launches Record One Point Four Billion Dollar Lawsuit Against Chemical Giant 3M Over Contamination
China and Canada Foreign Ministers Meet in Ottawa in Effort to Stabilize Strained Diplomatic Ties
Indonesia Demands Urgent United Nations Security Council Reform Amid Escalating Global Conflicts
Extreme Weather Patterns Trigger Severe Drought in Madagascar and Destructive Flooding in East Africa
Indian State of Karnataka Faces Political Upheaval as Chief Minister Siddaramaiah Abruptly Resigns
Philippines and Japan Reaffirm Defense Ties as Crucial for Indo-Pacific Regional Stability
Norway Joins French Nuclear Deterrence Initiative in Major Shift for European Security Architecture
Global Critical Mineral Alliances Expand as Western Nations Move to Counter Chinese Supply Dominance
United States Imposes Fifty Percent Tariffs on Mexican Steel and Aluminum Ahead of Trade Pact Review
European Union and China Head Toward Major Trade Conflict Over Clean Technology Exports
United States Economic Growth Severely Downgraded to One Point Six Percent as Stagflation Fears Mount
World Health Organization Warns Central African Ebola Epidemic is Outpacing Containment Efforts
United States Treasury Department Conditions Sanctions Relief on Reopening of the Strait of Hormuz
Iranian Air Defenses Intercept and Destroy United States Military Drone Over Bushehr Province
Iranian Armed Forces Launch Ballistic Missiles Toward Unspecified Targets Prompting Regional Condemnation
×