UK car production down 10% in 2022, but record EV output

UK automotive manufacturing declined -9.8% in 2022 to 775,014 models, in accordance with the most recent figures issued at this time by the Society of Motor Producers and Merchants (SMMT).

December rounded off a risky yr, with output down -17.9% within the month after development in October and November, with many of the yr’s quantity loss occurring within the first half.

The annual whole was 84,561 models down on 2021 and -40.5% off the 1,303,135 vehicles made in 2019 pre-pandemic, equal to a lack of greater than half one million vehicles. The principle causes for the depressed output have been the crippling international scarcity of semiconductors, which restricted the power to construct vehicles according to demand; important structural modifications, reflecting a lack of manufacturing at two-volume manufacturing websites; and the affect of provide chain pauses in China on account of Covid lockdowns.

Regardless of these challenges, UK factories turned out a report 234,066 battery electrical (BEV), plug-in hybrid (PHEV) and hybrid (HEV) electrical autos, with mixed volumes up 4.5% year-on-year to symbolize virtually a 3rd (30.2%) of all automotive manufacturing. Whole BEV manufacturing rose 4.8%, with hybrid volumes up 4.3%, and boosting output of those autos shall be essential in achieving internet zero, for each the UK and main abroad markets.

The figures come as contemporary SMMT evaluation confirms the more and more vital position of electrified automobile manufacturing to the UK economic system, particularly the worth of exports. Since 2017, the worth of BEV, PHEV and HEV exports has risen seven-fold, from £1.3 billion to greater than £10 billion. Consequently, electrified autos symbolize 44.7% of the worth of all UK automotive exports, up from a mere 4.1%. BEVs, particularly, are essential to the long run prosperity of the UK, with their export worth up greater than 1,500%, from £81.7 million to £1.3 billion.

The UK’s power in specialist, luxurious and efficiency automotive makers was additionally additional underlined, with output climbing 6.6% to 32,575 models, value an estimated whole of £3.7 billion at manufacturing unit gate costs, pushed by numerous new launches and fashions in excessive demand from patrons world wide. These producers play an vital position within the growth of superior automotive applied sciences equivalent to light-weighting and electrification which, in flip, might help advance wider trade.

Whole annual output for the UK market grew 9.4%, however this was not sufficient to offset a -14.0% drop in exports. Practically eight in 10 vehicles (606,838 models) have been constructed for abroad markets, in contrast with 168,176 for British patrons, emphasising the significance of free and honest international commerce.

The EU remained by far the sector’s largest market, at the same time as shipments declined -10.0%, with 57.6% of exports (349,424 models) heading into the bloc. Whereas exports to the US and China additionally fell, down -31.6% and -8.3% respectively, the variety of vehicles despatched to Japan (+5.7%), South Korea (+32.8%), Australia (+4.7%), Switzerland (+2.7%) and South Africa (+23.0%) all elevated, though collectively these represented simply 8.4% of exports.

Exports to Russia, a high 10 export market in 2021, fell -78.3%, with shipments made earlier than the outbreak of warfare in Ukraine and the cessation of enterprise.

Says Mike Hawes, SMMT Chief Government:

“These figures replicate simply how robust 2022 was for UK automotive manufacturing, although we nonetheless made extra electrical autos than ever earlier than – excessive worth, leading edge fashions, in demand world wide. The potential for this sector to ship financial development by constructing extra of those zero-emission fashions is self-evident, nonetheless, we should make the precise selections now.

“This implies shaping a technique to drive fast upscaling of UK battery manufacturing and the shift to electrical autos primarily based on the UK automotive sector’s basic strengths – a extremely expert and versatile workforce, engineering excellence, technical innovation and productiveness ranges which might be amongst the perfect in Europe.”

Wanting ahead, the most recent unbiased outlook expects that, with easing semiconductor shortages, UK automotive and lightweight van output ought to rise by 15% to 984,000 models in 2023 (842,200 vehicles and 141,800 mild vans), an uplift value some £3.9 billion. By 2025, manufacturing volumes are projected to surpass one million autos.