UK car production slumps by 20% in January

by | Feb 25, 2022

UK car production slumped by a fifth in January as manufacturers were hit by parts shortages, a plant closure and alterations to new models, according to industry data released Friday.
The Society of Motor Manufacturers and Traders (SMMT) said 68,790 cars were made during the month, the industry’s poorest start to a year since 2009.

Production for overseas and domestic markets was down by 17.5% and 30.8% respectively year on year, the SMMT added.

Battery electric vehicle production was up a third, with one in 11 cars rolling off factory lines zero emission. Including plug-in hybrids and hybrids, electrified vehicles accounted for more than 25% of output.

More than eight in 10 cars made were exported, with the EU remaining the largest destination for UK-made cars, taking 59.1% of exports, followed by China (10.4%) and the US (10.0%).

“It’s another torrid start to the year as global supply issues and structural changes squeeze output while model changes impact production scheduling,” said, SMMT chief executive Mike Hawes.

He added that the sector was fundamentally strong and had been boosted by recent investment announcements.

“Long-term recovery can only be delivered, however, if global competitiveness is assured and for that we must address both inflationary and fixed costs, most obviously escalating energy prices, but also fiscal and trading costs.”

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