7:35 am, October 27, 2022
UK car production in September fell for the first time in four months, new figures show.
Factories churned out 63,125 cars – a six per cent fall on the same month last year, Society of Motor Manufacturers and Traders (SMMT) data revealed today.
Output was restricted by supply chain issues, said the organisation.
Compared with pre-Covid September 2019, the figures were down by nearly 48 per cent.
Exports versus September 2021 declined by 7.4 per cent to 48,956 units, driven by reductions in shipments to the EU, US and China, although they increased to South Korea, Australia and Turkey.
The number of cars built for the UK market also fell slightly, down 0.9 per cent to 14,169 units.
However, despite the fall, UK production of battery-electric (BEV), plug-in hybrid (PHEV) and hybrid (HEV) cars grew by 9.9 per cent net to a record share of nearly 38 per cent.
Battery-electric cars in particular grew strongly – up 16.6 per cent to 8,856 units, representing more than one in seven (14 per cent) of cars made in September.
The data was published following new analysis by the SMMT showing the importance of electrified vehicle production to the UK’s purse.
The value of BEV, PHEV and HEV global exports has risen sixfold, from £1.3bn to £7.9bn over the past five years.
In 2021, the value of BEV, PHEV and HEV exports to the EU alone totalled £4.11bn, just surpassing the value of internal combustion car exports at £4.09bn.
Mike Hawes, SMMT chief executive, said: ‘Despite the current challenges, our car makers remain resilient and are well placed to ramp up output of the latest zero-emission vehicles, which will help drive an economic recovery, create jobs and boost growth.
‘Success is not guaranteed, however, and to realise its potential the UK sector must attract new investment – which means creating competitive investment conditions.’
Commenting separately on the appointment of Rishi Sunak as the UK’s new prime minister, Hawes said: ‘What we now need is a clear and compelling strategy for growth and stability, one that reassures markets, shores up battered consumer confidence and ensures the UK is seen as investable.
‘As a major investor and employer, the automotive industry can help drive an economic recovery, but we sorely need a period of stability and a framework for competitiveness, one that delivers the conditions and regulatory certainty to attract investment, talent and innovation, and not least in the global race to net zero.’
Reacting to news of September’s figures, What Car?’s editorial director, Jim Holder, said the UK needs to claim its position at the top table of EV development.
‘With electrified vehicles making up a record 37.4 per cent of UK car exports in September, it’s clear there’s only one direction the industry is heading,’ he said.
Holder added: ‘This week, Ford announced it was discontinuing its best-selling Fiesta, as the model no longer fitted with its electric ambitions, showing the scale of the commitment by manufacturers towards electrification.
‘The UK needs to be at the forefront of electric vehicle development and manufacturing if it is to stay relevant in the automotive industry.’
Meanwhile, Lisa Watson, director of sales at Close Brothers Motor Finance, commented: ‘Supply chain issues are showing signs of improvement, but we are certainly not where we need to be for the motor manufacturing industry in the UK.
‘Production now has almost three years of catching up to do if it hopes to return to full strength.
‘The motor industry isn’t top of the government’s agenda at the moment, but there’s no doubt it needs support and investment to sustain its place as a stalwart of British industry.’
KPMG’s UK head of automotive, Richard Peberdy, said: ‘I worry about the UK sector’s ability to invest in key technology development and skills.
‘Both are critical for the UK to retain any position of strength in the medium term, as the global automotive and mobility industry reshuffles itself around energy transition and new global platforms.’
