By Ian Walker

U.K. car manufacturing fell 42% in September, its worst drop for the month since 1982, an industry body said Thursday, adding that global chip shortages continue to hurt production and have added more than 2.4 billion pounds ($3.30 billion) to costs.

The Society of Motor Manufacturers and Traders said a total of 67,169 cars drove off the production lines in September, compared with 114,732 in September 2020. Production for the first nine months of 2021 was 3.8% higher at 656,776.

Of those cars manufactured last month, 14,297 were for the home market compared with 27,199 for the same month a year earlier, the industry group said.

"The substantial decline in U.K. car output in September continues the worrying trend we have seen over the past three months. The industry is continuing to battle the effects of the pandemic with the shortage of semiconductors stalling production," SMMT Chief Executive Mike Hawes said.

Write to Ian Walker at ian.walker@wsj.com

(END) Dow Jones Newswires

October 28, 2021 01:55 ET (05:55 GMT)