Beautiful Virgin Islands

Thursday, Apr 02, 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.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Debate Grows Over Whether Expanded North Sea Drilling Can Reduce UK Energy Bills
UK Faces Heightened Risk of Jet Fuel Shortages, Airline Chief Warns
UK Ends Police Investigations into Lawful Social Media Posts After Review Finds Overreach
Abramovich Moves to Establish Charity for Frozen Chelsea Sale Proceeds Amid UK Dispute
Starmer Reaffirms NATO Commitment While Responding to Trump’s Strategic Critique
UK Aid Reductions Raise Fears of Severe Human Impact Across Parts of Africa
UK Signals Renewed Push for EU Cooperation as Iran Conflict Reshapes Security Landscape
Bank of England Signals Caution as Bailey Advises Markets Against Expecting Rate Hikes
UK to Convene Global Coalition to Restore Shipping Through Strait of Hormuz
Trump Signals Possible NATO Reassessment, Emphasizes Stronger U.S. Strategic Autonomy
Australia Joins British-Led Efforts to Reopen Strait of Hormuz Amid Escalating Tensions
King Charles Plans US State Visit as UK Strengthens Ties with Trump Leadership
UK Regulator Launches Investigation Into Microsoft’s Business Software Practices
Kanye West Set for High-Profile Return to UK Stage at Wireless Festival
Trump Presses Europe to Strengthen Commitment as Iran Conflict Escalates
UK to Deploy Additional Troops to Middle East Amid Rising Regional Tensions
UK Authorities Face Claims of Heavy-Handed Measures in Monitoring Released Pro-Palestine Activists
Trump Calls on UK to Secure Its Own Energy as Iran Conflict Intensifies
Nigel Farage Declines Invitation to UK Conservative Conference Led by Liz Truss
Trump Warns Allies to Take Responsibility as Rift Deepens with UK and France Over Iran Conflict
How Britain’s Prime Minister Controls U.S. Bomber Access in Escalating Iran Conflict
Trump Urges Allies to Secure Their Own Oil Supplies as Hormuz Crisis Disrupts Global Energy
Russia Expels British Diplomat as UK Pushes Back Against Pressure
White House App Faces Scrutiny After Claims of Continuous User Location Tracking
BBC Faces Scrutiny Over Allegations of Paid Content Linked to Saudi Arabia
UK-France Coastal Patrol Agreement Nears Breakdown Amid Migration Pressures
UK Police Detain Pro-Palestine Activist Again Weeks After Bail Release
FTSE 100 Advances as Energy and Mining Shares Gain Amid Middle East Tensions
Eli Lilly Seeks UK Pricing Deal to Unlock Renewed Pharmaceutical Investment
Three Arrested in UK After Massive Cocaine Haul Discovered Hidden in Banana Shipment
UK Fuel Prices Poised for Further Surge Amid Global Energy Pressures
Apple Subsidiary Penalized by UK Authorities for Breach of Moscow Sanctions
Western Allies Intensify Coordinated Sanctions Strategy Against Russia
UK Lawmakers Face Criticism Over Renewed Push for Social Media Restrictions
Starmer Signals UK Crackdown on Addictive Social Media Features
Rising Costs Push One in Five UK Hospitality Businesses to the Brink of Closure
Man Arrested on Suspicion of Attempted Murder After Car Strikes Pedestrians in UK, Injuring Seven
Escalating Conflict Involving Iran Tightens Fiscal Pressures and Highlights UK Economic Vulnerabilities
UK Moves to Confront Russian ‘Shadow Fleet’ Operating in Its Waters
UK Housing Divide Deepens as Older Owners Hold Wealth While Under-30s Face Mounting Barriers
London Demonstration Calls on UK to Recognize Iranian Opposition’s Provisional Government
UK Green Party Vote on ‘Zionism is Racism’ Motion Collapses Amid Internal Disputes and Technical Failures
SNL UK Ignites Debate with Sharp Royal Satire Targeting Prince Andrew and Prince William
EU Proposes ‘Emergency Brake’ to Resolve Deadlock in UK Youth Mobility Talks
Thousands Rally in London to Oppose Rise of Far-Right Movements
Hong Kong Official Rejects Allegations of Surveillance Orders Targeting UK-Based Dissidents
PayPal Expands Cryptocurrency Services to Allow UK Users to Buy and Sell Bitcoin
UK Minister Challenges Reform Party’s ‘Pro-Family’ Agenda as Debate Intensifies
Concerns Grow Over Meningitis Risk Among UK Students Amid Warning Signs of New Outbreaks
Japanese Grand Prix 2026: Schedule, UK Start Times and Full Broadcast Details
×