A total of 775,014 cars were manufactured in the UK during 2022, a decrease of 10 percent from the 859,575 vehicles produced in 2021, which was already a challenging year for the industry. Additionally, the 2022 figure marks a decline of over 40 percent compared to the total for 2019, the last year before the effects of COVID and semiconductor shortages were felt. In 2019, Britain's car plants produced 1.3 million cars, and the industry is working towards reaching that level again by 2025.
The SMMT attributes the decline in production to a combination of COVID and the chip crisis, as well as Stellantis' decision to discontinue production of the Vauxhall Astra at the Ellesmere Port factory in April 2022 in favor of producing electric vans at the same location. This move followed Honda's decision to close its factory in Swindon, which also had a significant impact on production in 2021.
However, there is some good news, as the UK saw an increase in the production of electrified vehicles during 2022, accounting for nearly one third of all cars. A total of 234,066 fully electric, hybrid, and PHEV vehicles were manufactured in the country last year, an increase of 4.5 percent from 2021.
The reopening of the Chinese economy is expected to lead to an increased availability of chips, which could result in a 15 percent increase in UK vehicle production. However, some industry experts are concerned that investment may be redirected to the U.S. due to the Inflation Reduction Act, which grants EV tax credits to buyers of cars that are built in the U.S. using locally sourced parts, despite objections from other regions, including Europe.
Source: Sky News