The pandemic and the announced switch to electric vehicles are weighing on the industry
The British auto industry collapsed in the wake of the corona crisis. In the first ten months of the year, production of around 743,000 vehicles was a third (almost 34 percent) below the level of the same period last year, as the industry association Society of Motor Manufacturers and Traders (SMMT) announced on Thursday.
The pandemic, Brexit and Prime Minister Boris Johnson's announced complete switch to electric vehicles in less than a decade weighed on the industry, said SMMT boss Mike Hawes. Should Brussels and London fail to agree on a Brexit trade pact, the association expects losses of more than 55 billion pounds (62 billion euros) in the next five years.
In October production collapsed by almost a fifth compared to the same month last year. The association announced that around 110,000 vehicles left the factories – almost 24,500 fewer than in October 2019. Above all, exports to the EU and the USA fell. In contrast, according to SMMT, more vehicles have been sold to China and Japan, where the corona measures are currently not so strict.
Premier Johnson wants to ban the sale of diesel and gasoline cars by 2030. The sale of hybrid models, however, should remain allowed until 2035.
