8:13 am, January 26, 2023
Damning figures released today by the SMMT have revealed that UK car production fell to its lowest level since 1956 last year.
The trade body says a total of 775,014 cars were built in 2022 – a 9.8 per cent slump on the 859,575 made during the previous year.
The decline, which saw figures reach their lowest level in 66 years, has been put down to the global shortage of semiconductors and other supply chain issues.
Despite small levels of growth in October and November, December saw a return to decline with output down 17.9 per cent year on year.
Overall, numbers were 40.5 per cent down on pre-coronavirus levels in 2019.
Volumes for the UK last year were up 9.4 per cent compared with 2021, but this failed to offset a 14 per cent decline in exports, with four out of five UK-built cars shipped overseas.
The SMMT said the ongoing global shortage of semiconductor chips limited the ability of car makers to build vehicles in line with demand.
It also pointed the finger at the closure of Honda’s factory in Swindon in July 2021 and the decision by Stellantis to stop producing the Vauxhall Astra in Ellesmere Port in April 2022 as factors in the decline.
Despite the struggles, there was some good news with record levels of electrified vehicles produced. Almost a third of all cars made were fully electric or hybrid.
The SMMT estimates that they were worth £10bn in exports alone.
CEO Mike Hawes said: ‘These figures reflect just how tough 2022 was for UK car manufacturing, though we still made more electric vehicles than ever before – high-value, cutting-edge models, in demand around the world.
‘The potential for this sector to deliver economic growth by building more of these zero-emission models is self-evident. However, 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 among the best in Europe.’
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