London Daily

Focus on the big picture.
Wednesday, Oct 14, 2026

'Worst October since 1956': Global COVID woes apply brakes to UK car production

'Worst October since 1956': Global COVID woes apply brakes to UK car production

The Society of Motor Manufacturers and Traders warns that a resurgent COVID pandemic risks inflicting more damage to output as the sector globally counts the cost of the chip shortage that has dented production and sales alike.

The UK car industry has warned of challenges just to remain operational after it produced just shy of 65,000 cars last month - the weakest October since 1956.

The Society of Motor Manufacturers and Traders (SMMT) blamed "production stoppages" linked to the shortage of semiconductors globally for the woeful total, adding that a resurgent coronavirus pandemic could make things worse in the months ahead.

The chip shortage is tipped, according to consulting firm AlixPartners, to cost the world's automotive industry $60bn (£45bn) in lost sales this year.

The closure of Honda's Swindon plant in the summer has added to the lower volumes


The lack of chips - a result of COVID-19 disruption that has left supply lagging high demand - has hampered sectors across the factory economy from gaming console producers to defence.

It has also damaged the transition towards the electric car future - demanded by this country's government ahead of the looming ban on the sale of new vehicles powered by petrol and diesel engines from 2030.

The production problems have helped power too the country's intensifying inflation rate.

That is because the lack of new vehicles has pushed up prices across the auto sector, with second-hand cars shooting up in value in particular.

The SMMT said the total number of cars produced in October was 41% down on the same month last year.

The decline was exacerbated by the permanent closure of Honda's Swindon plant in July.

"More positively, production of the latest battery electric (BEV), plug-in hybrid (PHEV) and hybrid (HEV) vehicles comprised 30.9% of all cars made in October," the SMMT said.

"BEV manufacturing rose 17.5% to 8,454 units, meaning that, so far this year, UK car makers have produced more than 50,000 zero emission vehicles, exceeding the total built in the whole of the pre-pandemic 2019."

Jaguar Land Rover, Britain's biggest car producer, has forecast a "gradual recovery" in chip availability from the spring though the SMMT fears it will be 2023 before supplies return to normal levels.

Chief executive Mike Hawes said of October's production data: "These figures are extremely worrying and show how badly the global semiconductor shortage is hitting UK car manufacturers and their suppliers.

"Britain's automotive sector is resilient but with COVID resurgent across some of our largest markets and global supply chains stretched and even breaking, the immediate challenges in keeping the industry operational are immense."

Newsletter

Related Articles

0:00
0:00
Close
MI5 Warns of Rising Russian and Iranian Sabotage Threats to British Military Facilities
UK Prime Minister Andy Burnham Pledges Closer EU Ties as MI5 Reveals Russian Brexit Interference
UK Orders Security Review Following Reported Killing of Former Politician Ann Widdecombe
UK Prime Minister Andy Burnham Meets German Chancellor Merz to Strengthen European Security Ties
Nearly 100,000 NHS Patients Treated in Hospital Corridors as England Braces for Winter Pressures
UK Government Rejects US-Russia Diesel Agreement and Reaffirms Sanctions Against Moscow
UK and Germany Agree to Deepen Security and Economic Cooperation Following Berlin Talks
British Prime Minister Burnham Pledges Closer EU Ties During Visit to Germany
UK Announces New Sanctions on 17 Russia-Linked Entities During Foreign Secretary's Ukraine Visit
UK and Germany Finalize Kensington Treaty to Strengthen Defense and Technology Cooperation
Britain Maintains Diplomatic Mission in East Jerusalem Despite Israeli Closure Deadline
English Councils Push Government to Rethink Proposed Funding Cuts
Scottish Homebuilding Falls to Lowest Level in 11 Years
BBC Chief Matt Brittin Defends Restructuring as Staff Challenge Job Cuts
UK Finance Warns High Energy Costs and Bond Yields Are Complicating Fiscal Outlook
UK Adopts All 44 Recommendations on Regulating AI in Healthcare
Chancellor John Healey Prepares Autumn Budget as Borrowing Costs Strain Public Finances
UK Investigators See Strong Indications of Iranian Link After RAF Fairford Security Operation
Laura Trott Pledges Tighter Controls on Political Activism in UK Classrooms
Welsh Ministers Launch Long-Term Review of North Wales and Anglesey Crossings
Welsh Government Orders 18-Month Study of Road Solutions Around Newport
Reform UK MP Sarah Pochin Faces Scrutiny Over £800,000 Second Home Purchase
British Households Grow More Concerned About Fuel and Energy Prices
NHS Leaders Warn of Rising Winter Pressure on Emergency Departments
Kemi Badenoch Proposes £2.3 Billion Employer National Insurance Cut for Young Workers
Middle East Conflict Could Erase UK Fiscal Headroom, Economists Warn
Manchester City Found Guilty of Multiple Premier League Financial Rule Breaches
UK Security Services Find Strong Indications of Iranian Role in RAF Fairford Incident
Costa Coffee Returns to Operating Profit on Iced Drinks and Menu Changes
Asos Warns Customers After Unauthorized Access to Retail App and Data
Kemi Badenoch Puts Growth and Deregulation at Center of Conservative Conference
Campaigners Warn of Deepening Social Care Crisis for Disabled Adults
Study Finds Rising Early-Onset Cancer Rates Among Adults Under 50 in Britain
UK Coach Operators Warn High Diesel Prices Could Force Route Cuts
FCA Opens Independent Review Into Handling of Epstein-Linked Whistleblower Case
Argentina Vows to Block Falkland Islands Offshore Oil Development
UK Chancellor Prepares Fiscal Measures and Welfare Reforms Ahead of Autumn Budget
Sainsbury’s and Morrisons Explore Potential Multi-Billion-Pound Merger
UK Weighs Tariffs on Chinese Electric Vehicles to Align With European Union
UK Threatens Diplomatic Expulsions Over Planned Closure of East Jerusalem Consulate
UK Energy Price Cap Hits Three-Year High as Middle East Conflict Raises Costs
Seventh Arrest Made in Suspected Terror Plot at RAF Fairford
Systemic Education Collapse Sparks Mass Student Uprisings in France
Green Party Faces Backlash Over Resolution Equating Zionism With Racism
Conservatives Debate Scrapping Environmental Rules for New Homes
Cornwall Insight Warns UK Energy Bills Could Approach £2,000 This Winter
UK Coach Operators Warn of Service Cuts as Diesel Prices Exceed £2
Scottish Parliament Approves £68 Billion Budget With New Tax and Property Measures
FCA Opens Independent Review Into Handling of Epstein Whistleblower
UK Government Drops Plan to Suspend Jury Trials in England and Wales
×