UK commercial vehicle production up despite global chip shortage

Commercial vehicle manufacturing grew in the UK last month despite the ongoing global chip shortage, new figures have revealed. Data from the Society of Motor Manufacturers and Traders (SMMT) shows almost 7,900 new commercial vehicles (CVs) were built in the UK last month in spite of “challenges” caused by the shortage.

Although there’s a global semiconductor shortage that saw UK new car production fall by more than 40 percent last month, the 7,900 figure was up by more than 17 percent compared with the same month in 2020. However, it was still 6.9 percent below the five-year pre-Covid average for the month.

The increase in production came amid particularly strong demand from the UK itself, with more than half the vehicles produced in this country finding homes on our shores. The 3,960 vehicles built for the UK market represented a 29.8 percent uplift compared with October 2020, while 6.8 percent more vehicles were built for export markets.

Over the first 10 months of 2021, UK commercial vehicle production, which includes van manufacturing, was up by more than 15 percent compared with the same period last year. Of course, such figures are skewed by the coronavirus pandemic, and the 58,813 new commercial vehicles built so far in 2021 is 18 percent lower than the five-year pre-Covid average.

Although the UK commercial vehicle manufacturing sector has grown across the board, the increase in production for domestic markets is particularly strong. With 28,652 CVs built for UK customers in the first 10 months of 2021, production for the British market is up by more than a quarter compared with 2020.

More on the UK commercial vehicle market:

UK new van sales remain strong despite supply issues

UK commercial vehicle industry continued Covid recovery in May

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And with production for foreign markets up by a ‘mere’ 5.7 percent, there is now an almost equal split between vehicles built for UK customers and those headed abroad. Where exports accounted for 56.1 percent of the total in the first 10 months of 2020, that has fallen to 51.3 percent this year.

“Significant growth in CV production during October comes as welcome news, but it must be viewed in context against a weak month in 2020,” said SMMT chief executive Mike Hawes. “The sector is not immune from the ongoing challenges caused by the pandemic and, most notably, the semiconductor shortage and there remains plenty of uncertainty in the months ahead. UK manufacturers are committed to doing all they can to keep production lines operational, getting more of the latest, cleanest CVs onto our roads, and boosting fleet renewal which will go a long way to improving air quality in urban areas.”

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