LONDON, (Reuters) – British car production dropped by 41.5% last month, to the lowest September level since 1982. This was due to a shortage of semiconductor chips that continues to disrupt this sector globally.

According to the Society of Motor Manufacturers and Traders, 67169 vehicles were shipped off British plant lines in December, data shows.

A survey by members revealed that more than 8 out 10 people have felt negatively affected by chip shortages. These were caused by cost rises, lower orders, and other factors. To mitigate this problem, some have made use of redundancies or reduced opening hours.

Mike Hawes (SMMT Chief Executive) stated that “the industry is still fighting the effects from the pandemic, with the shortage in semiconductors stalling manufacturing.”

Hawes suggested that there could have been more in Wednesday’s budget announcement by the government.

“It failed to give meaningful, short-term assistance due COVID-related supply limitations and rising energy bills.