Vehicle supply challenges in the UK 

You may have seen in the news that the UK auto industry is facing challenges with delays in some new vehicle orders and limited production on some makes and models. A global shortage of semiconductor chips and continued pressures due to the pandemic are having an impact across the sector. In response, we’re working with manufacturers and our supply chain to improve vehicle availability for our customers and are closely monitoring the global and national situation.

There’s more below about the issues affecting the industry and we’ll continue to update this page with information as it becomes available. 

Why the semiconductor chip shortage is impacting the UK auto industry

One of the main reasons why production and supply of new vehicles is severely limited is a global shortage of semiconductor chips. These parts are essential for a variety of systems in modern cars and demand for them is shared across other electronics industries too. 

The lack of these parts has led to many manufacturers scaling back production and to a shortage of new vehicles, severely impacting how long new vehicle orders are taking to arrive. Some manufacturers are also prioritising the limited supply of semiconductor chips for electric vehicle production as we’re seeing a huge increase in demand for these vehicles. Electric vehicle registrations in 2021 totalled more than the previous five years combined.

The pandemic is still causing supply chain delays

Like many industries, the pandemic is causing challenges for the auto industry, including problems with delayed supply chain deliveries due to global and national transportation challenges. This has caused more delivery cancellations. Shortages in HGV drivers and Covid-19 related staff absences are also having an impact.

We’re improving business fleet car and van rental options

Car and van rental supply is heavily affected by the knock-on impact of fewer vehicles coming into the UK rental supply chain. We’re improving our core supplier network to offer more vehicle options for car and van rentals later in 2022 and our reservations teams will continue to help support customers to meet their fleet needs during this time. If you manage a fleet with Lex Autolease, you can also speak to your Relationship Manager if you have any questions or need more support.

Date published - 19/01/2022