2022 UK car production decline

UK car production declined 9.8% in 2022 to 775,014 units, according to the Society of Motor Manufacturers and Traders (SMMT).

This was a 40.5% decrease compared to the number of cars made in 2019, the society said.

The decrease was due to a global shortage of semiconductors, a loss of production at two volume manufacturing sites and the impact of supply chain pauses in China due to Covid lockdowns, the SMMT added.

Despite these challenges, UK factories turned out a record 234,066 battery electric (BEV), plug-in hybrid (PHEV) and hybrid (HEV) electric vehicles, with combined volumes up 4.5% year-on-year to represent almost a third (30.2%) of all car production. Total BEV production rose 4.8%, with hybrid volumes up 4.3%. Since 2017, the value of BEV, PHEV and HEV exports has risen seven-fold, from £1.3 billion to more than £10 billion. As a result, electrified vehicles represent 44.7% of the value of all UK car exports, up from 4.1%.

“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,” said Mike Hawes, SMMT chief executive. “The potential for this sector to deliver economic growth by building more of these zero emission models is self-evident.”

The SMMT predicted that with easing semiconductor shortages UK car and light van output could rise by 15% to 984,000 units in 2023 (842,200 cars and 141,800 light vans), so that by 2025 production volumes could surpass a million vehicles.