9:02 am, December 23, 2022
UK car factories are ‘doing their best to meet demand’ as latest figures show new car production has risen for the second consecutive month.
The number of cars that rolled off UK production lines came to 80,091 in November – up 5.7 per cent, the Society of Motor Manufacturers and Traders (SMMT) said today.
Output has now grown in six of the past seven months ‘demonstrating how, even amid global chip shortages and supply chain constraints, factories are doing their best to meet demand for new cars at home and overseas’, the organisation said.
Despite the rise, November’s performance was still down against historic levels.
SMMT data shows November 2022 was 44.1 per cent off the pre-pandemic five-year average for the month, and 25.7 per cent down on 2019’s total of 107,744 units.
Semiconductor shortages, Covid lockdowns, the Ukraine war and ‘structural and product changes’ are said to be to blame.
Production for the home market was up 59.1 per cent to 20,206 units, a rise of 7,505 cars, while export volumes fell five per cent to 59,885, a loss of 3,170.
Exports accounted for 74.8 per cent of all cars made in the month, with the majority of shipments (57.3 per cent) heading into the EU, followed by the US (21.9 per cent) and China (5.9 per cent).
Production of battery-electric (BEV), plug-in hybrid (PHEV) and hybrid (HEV) vehicles rose once again, with combined volumes up 18.3 per cent to 29,318 units and representing more than a third (36.6 per cent) of total production in November.
Since January, UK manufacturers have turned out 209,930 of these vehicles combined, up 2.9 per cent on the same period in 2021.
SMMT chief executive Mike Hawes said: ‘These figures bring some Christmas cheer to UK car makers in what has been another incredibly tough year.
‘Supply chain shortages, overseas lockdowns and some structural and product changes have combined to throttle output for much of 2022, but there is renewed hope these issues will begin to ease in 2023.
‘This could bring a much-needed boost to the economy. However, to attract the investment needed for long-term growth, we still need stability and more competitive conditions – not least to alleviate crippling long-term energy costs.’
Commenting on the data, Jim Holder, editorial director of What Car?, said: ‘The gap to pre-pandemic years shows the scale of the challenge ahead for the UK automotive industry.
‘With electric vehicle sales now accounting for 15 per cent of the new car market and rapidly growing, it’s important the country secures the investment and support required to continue to grow as a manufacturing hub for the technology.
‘The commitment from manufacturers has been encouraging this year, with new factories announced and investment to retrofit existing plants promised.
‘However, more needs to be done and further support is needed, especially from the government.
‘The sector employs more than 780,000 people across the country and cannot be left alone to navigate the turbulent economic climate of supply shortages and rising energy costs.’
Richard Peberdy, UK head of automotive at KPMG, said: ‘Electric vehicle adoption has been a silver lining on the 2022 storm clouds.
‘Whilst the cost-of-living crisis threatens that pace, transition to EVs has momentum that will certainly continue in 2023.’
Lisa Watson, director of sales at Close Brothers Motor Finance, said: ‘Though well-documented supply challenges continue to affect car production, pressure appears to be easing as manufacturers push to return to pre-pandemic levels.
‘Challenges such as the global chip shortage remain but are becoming a less-insurmountable hurdle, with slightly more positive signs emerging across the industry as November shows another month of growth.
‘As the backlog of new car orders begins to clear, this should also provide the used market with more quality second-hand stock.
‘However, the pressure remains on dealers to ensure they are utilising all available insights and tools to meet current demand and maximise sales opportunities.’
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