UK automobile manufacturing down 10% in 2022, however report EV output


UK automobile manufacturing declined -9.8% in 2022 to 775,014 items, in accordance with the newest figures issued as we speak 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 items down on 2021 and -40.5% off the 1,303,135 automobiles made in 2019 pre-pandemic, equal to a lack of greater than half one million automobiles. The primary causes for the depressed output had been the crippling international scarcity of semiconductors, which restricted the flexibility to construct automobiles according to demand; vital structural adjustments, reflecting a lack of manufacturing at two-volume manufacturing websites; and the affect of provide chain pauses in China as a consequence 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 automobiles, with mixed volumes up 4.5% year-on-year to symbolize nearly a 3rd (30.2%) of all automobile manufacturing. Whole BEV manufacturing rose 4.8%, with hybrid volumes up 4.3%, and boosting output of those automobiles might be important in achieving internet zero, for each the UK and main abroad markets. 

The figures come as recent SMMT evaluation confirms the more and more vital 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. In consequence, electrified automobiles symbolize 44.7% of the worth of all UK automobile exports, up from a mere 4.1%. BEVs, specifically, are important 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 automobile makers was additionally additional underlined, with output climbing 6.6% to 32,575 items, 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 improvement of superior automotive applied sciences corresponding to light-weighting and electrification which, in flip, will 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 automobiles (606,838 items) had 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, whilst shipments declined -10.0%, with 57.6% of exports (349,424 items) heading into the bloc. Whereas exports to the US and China additionally fell, down -31.6% and -8.3% respectively, the variety of automobiles 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 conflict in Ukraine and the cessation of enterprise.

Says Mike Hawes, SMMT Chief Govt:

 “These figures replicate simply how robust 2022 was for UK automobile manufacturing, although we nonetheless made extra electrical automobiles 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 best choices now. 

“This implies shaping a technique to drive fast upscaling of UK battery manufacturing and the shift to electrical automobiles based mostly on the UK automotive sector’s elementary strengths – a extremely expert and versatile workforce, engineering excellence, technical innovation and productiveness ranges which are amongst the most effective in Europe.”

Trying ahead, the newest impartial outlook expects that, with easing semiconductor shortages, UK automobile and light-weight van output ought to rise by 15% to 984,000 items in 2023 (842,200 automobiles and 141,800 gentle vans), an uplift value some £3.9 billion. By 2025, manufacturing volumes are projected to surpass one million automobiles.


Chris Value

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