It is no secret the pandemic has taken a terrible toll on many businesses, from hospitality and retail to the automobile industry. However, according to sources, the coronavirus has had such a devastating impact, the rate of new cars being built has fallen to its lowest point in decades.
Industry experts say the rate of production decreased by around 33%, approximately a third on last year. The worst rate of production since 1984.
There were around 920,928 vehicles built-in 2020, a decline of almost 30% in 2019. The Society of Motor Manufacturers and Traders has understandably described the past 12 months as a `dreadful year`, where we have seen the worst output of car production in a generation.
It would not be surprising to learn many have blamed the coronavirus outbreak, leading to car plants being forced to close. This, alongside a fall in customer demand for new cars, has resulted in an almost nightmare scenario.
The export market decreased by around 29% in 2020, which is even more devastating when you consider 80% of cars built in the United Kingdom are shipped abroad, which many industry experts say only underscores the need for tariff-free trade with the European Union. Especially as it is Britain’s biggest export destination, amounting to around half the market share.
However, despite the bleak situation, many in the automobile industry still feel, with the rollout of the vaccine and a trade deal with the European Union, there may still be light at the end of the tunnel in the coming year. As tough as things may get, we should never give up hope, as there may be an exit strategy, to help us move forward, and increase the production of new cars in the UK.