2023 UK car manufacturing recovery urgently needed, says SMMT | So Good News


Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), said more favorable conditions for investment were “needed and urgently needed” to ensure a 2023 recovery in UK car manufacturing.

Vehicle production by sector rose 7.4 percent in October, according to data released this morning (Nov 25) by the Automobile Industry Association this morning (Nov 25), as output for the domestic and foreign markets rose 12.5 per cent and 6.3 per cent respectively.

UK market volumes are up 8.8% year-on-year, but down 10.8%, but it remains to be seen whether economic conditions will allow for a sustained period of recovery.

SMMT UK car production data graph;  October 2022Hawes said: “Getting the sector back on track in 2023 is about jobs, It is a priority that will allow us to sustain the export and automobile industry.

“While UK carmakers are doing all they can to boost production of the latest electric vehicles and help net-zero, more favorable conditions are urgently needed for investment – particularly in affordable, sustainable energy and access to talent – as part of the enabling framework for car manufacturing.”

Richard Peberdy, head of KPMG’s UK automotive department, said it was still unclear where the investment needed for the UK car manufacturing sector would come from.

He said: “With inflation driving up the cost of making cars and increasing the price of many goods, the industry is anxiously awaiting the outcome of the Government’s review of energy price support for businesses beyond the end of March.

“Exposure to rising energy prices by 2023 could put further pressure on new car prices and threaten the global competitiveness of the UK car industry.

“Competition is well underway for countries seen as world leaders in electric vehicle (EV) production, and the UK’s position in cars, The manufacture of vans and parts depends on substantial investment in battery manufacturing and expertise. It’s unclear at this stage where that will come from.”

UK car production rose in October after four consecutive months of increases.

Global chip shortages in particular illustrate the sector’s “supply chain volatility”, SMMT said.

SMMT UK car production data;  October 2022October’s performance was down 48.4% from 2019’s total of 134,669 units and 52.8% below the five-year pre-Covid average for the month.

The final amount Exports of luxury cars and special-edition models accounted for more than 10 out of eight cars (81.2%) exported abroad, amounting to 56,469 vehicles, while 13,055 cars were produced for the domestic market, SMMT said.

Battery Electric (BEV) in the UK; Production of plug-in hybrid (PHEV) and hybrid (HEV) vehicles also rose again, with a combined increase of 20.3% to 24,115 units.

UK car factories produced a record 61,339 BEVs, a 16.2% increase over the same period in 2021.

Hugo Griffiths, consumer editor at carwow, said: “October’s production figures are a positive sign, with figures up more than 10% year-on-year, showing just how vulnerable they are. The industry has to supply the limits, and how far do we have to go before we get anywhere near pre-pandemic production levels?

“While the majority of cars produced in the UK are built for export, national production trends echo the global market.

“So UK consumers may still be waiting years for some crossover models to take a flexible approach when shopping for a new car.”


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