UK car production down but EV output surges to new record

Electric vehicle production soared to new heights last year as UK factories turned out a record 234,000 electric vehicles.

According to the latest figures issued today by the Society of Motor Manufacturers and Traders (SMMT), a record 234,066 battery electric (BEV), plug-in hybrid (PHEV) and hybrid (HEV) electric vehicles were registered in 2022, 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%, and boosting output of these vehicles will be critical in the attainment of net zero, for both the UK and major overseas markets.

The figures come as fresh SMMT analysis confirms the increasingly important role of electrified vehicle production to the UK economy, especially the value of exports. 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 a mere 4.1%. BEVs, in particular, are critical to the future prosperity of the UK, with their export value up more than 1,500%, from £81.7 million to £1.3 billion.

Overall, UK car production declined -9.8% in 2022 to 775,014 units. December rounded off a volatile year, with output down -17.9% in the month after growth in October and November, with most of the year’s volume loss occurring in the first half.

The annual total was 84,561 units down on 2021 and -40.5% off the 1,303,135 cars made in 2019 pre-pandemic, equivalent to a loss of more than half a million cars. The main reasons for the depressed output were the crippling global shortage of semiconductors, which limited the ability to build cars in line with demand; significant structural changes, reflecting a loss of production at two volume manufacturing sites; and the impact of supply chain pauses in China due to Covid lockdowns.

Mike Hawes, SMMT Chief Executive, 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 amongst the best in Europe.”

Total annual output for the UK market grew 9.4%, but this was not enough to offset a -14.0% drop in exports. Nearly eight in 10 cars (606,838 units) were built for overseas markets, compared with 168,176 for British buyers, emphasising the importance of free and fair global trade.