Car manufacturing in Britain fell by a few third final month, marking the weakest March for the reason that monetary disaster in 2009, as an ongoing international scarcity of chips and the Ukraine battle roiled producers, business information confirmed on Thursday.
The Society of Motor Manufacturers and Traders (SMMT) mentioned 76,900 automobiles had been produced in March in contrast with 115,498 final 12 months, and attributed the 33.4% fall primarily to a lower in manufacturing for abroad markets.
The auto business has been reeling from hovering metallic and power costs, supply-chain snarls as a result of pandemic and a scarcity of semiconductor chips that has harm different sectors too.
Now, Russia’s invasion of Ukraine – a serious auto hub – has left carmakers scrambling for different provides of significant components. Russia and Ukraine are sources for electrical wiring and for aluminium, palladium and nickel utilized in batteries.
The challenges meant 100,000 fewer automobiles had been manufactured within the first three months of the 12 months in contrast with 2021, SMMT information confirmed, as manufacturing for the quarter fell by 32.4%.
“Recovery has not yet begun and with a backdrop of an increasingly difficult economic environment, including escalating energy costs, urgent action is needed to protect the competitiveness of UK manufacturing,” mentioned SMMT Chief Executive Mike Hawes.
The business physique referred to as on the federal government for aid on power prices on the identical stage afforded to different energy-intensive industries, and requested for entry to low price and low carbon power because the shift to electrical autos ramps up.
Earlier this month, Britain prolonged a scheme to assist energy-intensive industries equivalent to metal manufacturing to deal with hovering electrical energy prices, which have additionally reached new highs this 12 months following the Russia-Ukraine disaster.
Source: www.financialexpress.com”