Car manufacturers in the UK have recorded their lowest annual output since 1956, due to a struggle to get parts as well as factory closures.
Figures from the Society of Motor Manufacturers and Traders (SMMT) show that a total of 775,014 cars were built in the UK in 2022. This was down 9.8% from the 859,575 made during the previous year and was 40.5% below the 1,303,135 cars made in 2019, before the pandemic — equivalent to a loss of more than half a million cars.
The main reasons for the fall in output last year were the global shortage of semiconductors, which limited manufacturers’ ability to build cars in line with demand; a loss of production at two volume manufacturing sites; and the impact of supply chain pauses in China due to Covid lockdowns.
Production of electric cars reached a record level, however. A total of 234,066 fully electric and hybrid vehicles rolled off UK production lines in 2022, up 4.5% year-on-year and representing 30.2% of all car production.
Mike Hawes, chief executive of the SMMT, highlighted the potential for electric vehicle manufacturing to increase and contribute to economic growth, but stressed “we must make the right decisions now”.
“This means shaping a strategy to drive rapid upscaling of UK battery production and the shift to electric vehicles based on the UK automotive sector’s fundamental strengths — a highly skilled and flexible workforce, engineering excellence, technical innovation and productivity levels that are amongst the best in Europe,” Hawes added.
