2022 UK automobile manufacturing down however electrical car output surges to new report

Annual UK automobile manufacturing falls -9.8% to 775,014 models in 2022 as world chip shortages and structural modifications depress output.
File ranges of electrified car manufacturing with virtually a 3rd of all vehicles made totally electrical or hybrid – value £10 billion in exports alone.
Volumes for UK rise 9.4% however fail to offset declining exports, down -14.0%, with some eight in 10 vehicles shipped abroad.
Auto sector, which is integral to levelling up, web zero and advancing world Britain, requires devoted framework to drive fast upscaling of UK battery manufacturing and shift to EVs.

LONDON, Jan. 25, 2023 /CNW/ — UK automobile manufacturing declined -9.8% in 2022 to 775,014 models, in line with the newest figures issued as we speak by the Society of Motor Producers and Merchants (SMMT). December rounded off a risky 12 months, with output down -17.9% within the month after progress in October and November, with many of the 12 months’s quantity loss occurring within the first half.

Global demand for UK made cars – top export markets 2022 (PRNewsfoto/Society of Motor Manufacturers and Traders (SMMT)) — International demand for UK made vehicles – high export markets 2022 (PRNewsfoto/Society of Motor Producers and Merchants (SMMT))

The annual complete 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.¹ The principle causes for the depressed output have been the crippling world scarcity of semiconductors, which restricted the flexibility to construct vehicles in keeping with demand; vital structural modifications, reflecting a lack of manufacturing at two quantity manufacturing websites; and the influence 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 automobile manufacturing. Complete BEV manufacturing rose 4.8%, with hybrid volumes up 4.3%, and boosting output of those autos can be essential within the attainment of web zero, for each the UK and main abroad markets.

The figures come as recent SMMT evaluation confirms the more and more essential position of electrified car manufacturing to the UK financial 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 automobile exports, up from a mere 4.1%. BEVs, specifically, 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.²

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

Complete 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 world commerce.

The EU remained by far the sector’s largest market, whilst 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, in the meantime, fell -78.3%, with shipments made earlier than the outbreak of battle in Ukraine and the cessation of enterprise.

Mike Hawes, SMMT Chief Government, stated, “These figures replicate simply how powerful 2022 was for UK automobile manufacturing, although we nonetheless made extra electrical autos than ever earlier than – excessive worth, leading edge fashions, in demand all over the world. The potential for this sector to ship financial progress by constructing extra of those zero emission fashions is self-evident, nonetheless, we should make the fitting selections now.

“This implies shaping a method 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.”

Even amid the powerful financial and political setting, UK Automotive is integral to ambitions on levelling up, delivering web zero and advancing world Britain. In 2022, publicly introduced funding for the sector reached a complete of £4.5 billion, with main new commitments to electrification in Crewe and Merseyside. This was down barely from the potential £4.9 billion introduced in 2021, which included the proposed growth of a brand new battery gigafactory within the West Midlands.³

Given the worldwide and home challenges, trade is in search of a devoted framework to place the UK as one of many world’s best places for superior automotive manufacturing. This framework should handle hovering vitality prices and the specter of growing world protectionism, present fiscal measures to encourage funding in zero emission applied sciences and equip the UK’s gifted workforce with the fitting expertise to ship these autos.

Trying ahead, the newest impartial outlook expects that, with easing semiconductor shortages, UK automobile 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.⁴

Photograph – https://mma.prnewswire.com/media/1989252/SMMT_top_export_markets_2022.jpg

Hello-res charts obtainable by way of Dropbox:
https://www.dropbox.com/scl/fo/ha805ahsg1cr6lw34ilys/h?dl=0&rlkey=36sg3zwkhx460tet4z6lvvirz