London Daily

Focus on the big picture.
Saturday, Mar 14, 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
Prince Harry and Meghan Markle’s Planned Australia Visit Draws Mixed Reaction From Local Communities
Trump Calls on France and UK to Help Safeguard Strait of Hormuz Shipping Route
Boris Johnson Labels Bitcoin a ‘Ponzi Scheme’, Sparking Debate in Crypto World
UK Considers Targeted Aid for Vulnerable Households as Energy Costs Rise
Stellantis Urges Immediate Review of UK Electric Vehicle Sales Targets
Home Office Reverses Course to Allow Some Dual Nationals to Enter UK Using EU Passports
Reform UK Proposes Replacing Top Civil Servants With Officials Aligned to Government Agenda
Netflix Adds Critically Acclaimed ‘Best Film of 2025’ With Perfect Rotten Tomatoes Score
‘The Sums Don’t Add Up’: UK Farmers Hit by Soaring Costs as Iran War Disrupts Global Supplies
Confidential UK Biobank Health Records Found Online After Researchers Accidentally Expose Data
Trump Urges Britain and Allies to Deploy Warships to Safeguard Strait of Hormuz
Trump Urges Britain and Allies to Deploy Warships to Safeguard Strait of Hormuz
Middle East War Highlights Strategic Importance of Strong UK–Ireland Cooperation
Weak Growth Signals UK Economy Was Faltering Even Before Middle East Energy Shock
Marks & Spencer Tops UK Fashion Retail Rankings as Most Considered Brand
United States Launches Trade Investigation Into Allies Over Forced Labour Practices
United States Launches Trade Investigation Into Allies Over Forced Labour Practices
Russia Accuses Britain Over Storm Shadow Strike as London Reaffirms Ukraine’s Right to Self-Defence
Russia Accuses Britain Over Storm Shadow Strike as London Reaffirms Ukraine’s Right to Self-Defence
Royal Navy to Acquire Twenty Uncrewed Surface Vessels for Autonomous Warfare Testing
Russia Summons British and French Envoys After Ukrainian Storm Shadow Strike on Strategic Facility
Starmer Confirms Britain Will Maintain Sanctions on Russia Despite U.S. Policy Shift
UK Moves to Refine AI Definition in Investment Security Reform
UK Economy Stalls in January as Growth Unexpectedly Falls to Zero
Asian Energy Security Tested as Strait of Hormuz Disruption Threatens Oil Supplies
Iran Sets Three Conditions for Ending Regional War as Diplomatic Efforts Intensify
Tesla Secures Approval to Supply Electricity Directly to Homes Across Britain
Prince William Delivers Tribute to Australia’s Naval Alliance Amid Renewed Royal Spotlight on the Country
UK Foreign Secretary Travels to Saudi Arabia to Reinforce Support for Regional Allies
Putin’s ‘Hidden Hand’ May Be Assisting Iran in Conflict With Trump, UK Defence Secretary Warns
UK Sets April Deadline for Tech Platforms to Strengthen Online Protections for Children
Elon Musk Moves Into Britain’s Energy Market as Tesla Wins Licence to Supply Power
UK Watchdog Warns Fuel Retailers Against Profiteering Amid Iran War Price Surge
Report Claims Iran Used UK Charity Network to Expand Influence
United States and United Kingdom Establish Joint Standards for Counter-Drone Technology
Iran May Be Laying Naval Mines in Strait of Hormuz, UK Warns Amid Escalating Gulf Tensions
US Deploys Bunker-Buster Bombs to UK Airbase as Iran Conflict Intensifies
British Troops in Iraq Intercept Iranian Drones Targeting Coalition Base
Release of Mandelson Files Raises Tensions as UK Seeks Stable Relations With Donald Trump
UK Documents Reveal Starmer Was Warned About Mandelson’s Epstein Links Before Ambassador Appointment
Nearly Five Hundred UK Mortgage Deals Withdrawn in Two Days as Market Volatility Forces Lenders to Reprice
Three Cargo Ships Hit Near Iran as Attacks Spread to Strategic Strait of Hormuz
Why British Police Repeatedly Declined to Investigate Jeffrey Epstein’s UK Links
UK Parliament Ends Hereditary Seats in House of Lords, Closing Chapter on Centuries of Aristocratic Lawmaking
EU and UK Urge Israel to Act Against Rising West Bank Settler Violence Amid Regional Tensions
US Senator John Kennedy Says Keir Starmer Should Not Be Trusted for Military Advice Amid Iran War Debate
UK High Court Rejects Attempt to Revive Terrorism Charge Against Kneecap Rapper
Revolut Secures Full UK Banking Licence After Multi-Year Regulatory Wait
Kentucky’s Bench Boost Powers Wildcats Past LSU in SEC Tournament Opener
British Couple Die After Being Pulled From Water at Australian Beach During Family Visit
×