UK car production fell 6.7% in 2021, mainly due to epidemic factors, but the ீடு 4.9 billion investment was the largest since 2013, according to industry data.
“Last year was very bad. We expect things to be better this year, and there is reason to be optimistic,” Mike Howes, executive chairman of the Association of Automobile Manufacturers and Traders (SMMT), told a news conference.
In 2021, 859,575 vehicles were produced in the UK, up from 920,928 in the previous year.
The shortage of semiconductors, an essential component of automobile production, was cited as the main reason for the decline as many factories had to reduce or suspend production.
Other factors cited were labor shortages, isolation due to the Govt-19 epidemic, and declining demand due to the closure of car retail outlets.
The closure of the Honda factory in Swindon in July was a blow to the industry.
However, House believes there are reasons for “optimism” in the investment of £ 4,900 million (€ 5,900 million) in 2021, compared to 3,200 million in 2020.
The main part of the investment was a-2.5 billion investment in an electric car battery factory in Coventry, central England, through a public-private partnership.
Car manufacturers have stressed the need for more electric battery factories to ensure the industry’s vitality and competitiveness in switching to carbon neutrality.
The British government has set a 2030 deadline for the sale of combustion engines in the UK.
By 2021, 26% of vehicles manufactured in the UK will be electric or hybrid, with power generation increasing by 72% to 16.4% for hybrids.
The impact of “Brexit”, as new regulations and documents come into force, continues to obscure industry that has the European Union (EU) as its main market (55%), resulting in rising costs.
Most auto parts are imported from European countries, so manufacturers have made documentation based on adjustments and avoidance of traffic problems.
“Farmers have done a lot of work over the last three to four years to make sure they have the right processes, but it has come at a cost,” Howes said.
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