Around 10 million less vehicles were produced in 2021 as a result of supply chain issues, market intelligence group LMC Automotive has revealed.
According to research, the European automotive industry – which saw a 3 million shortfall in production – was among those hit the worst, while semiconductors shortages led to delays and disruption, the Telegraph first reported.
Despite the ongoing issues, LMC’s global head of production Justin Cox has said the situation has slightly improved over the last few weeks, as the industry has put in place to mitigate disruption, including reducing the number of devices per car.
“I think the auto industry itself is beginning to mitigate some of the problems within the supply chain a bit better,” he told the Telegraph. “Some of the things that they put in place early on in the crisis are starting to seep through.”
In the UK, automotive output declined 28.7 per cent in November to 75,756 units produced, City A.M. reported.
Year-to-date, UK automotive plants have produced 797,261 units – almost 433,000 less compared with pre-pandemic times. Exports, especially to Europe, accounted for 80 per cent of all cars produced last month – with 60.3 per cent shipped to the continent.
LMC’s research echoed the words of KPMG’s head of automotive Richard Peberdy, who said that supply chain challenges would continue well into 2022.
“As component supply issues ease, production will increase to meet pent-up vehicle demand,” he said. “But I’d argue that we are entering a ‘new normal’ for car manufacturing and we won’t again see the levels of over-production and discounting that we did pre-pandemic.
“Instead, manufacturers will focus volume on more profitable vehicles and markets. Demand will change too and in light of sustainability concerns and hybrid working, consumers will be rethinking what they drive and how they access and pay for mobility more widely.”