Car production in the UK fell by 9.8% in 2022 resulting in the worst production year since 1956.
Having to deal with the aftermath of the Covid-19 pandemic as well as a worldwide semiconductor shortage, the car manufacturing industry as a whole has taken something of a beating. However, in the UK, factory closures have only added to the problems facing the industry.
The Numbers
In 2022, 775,014 cars were produced in the UK. This was around 1.3 million less than pre-pandemic levels. Leaving the EU has seen a consistent fall in UK car production with numbers falling every year since the decision to leave in 2016.
Car manufacturers are hopeful that the industry will pick up again but they are concerned that this can only happen with high levels of investment and more car makers moving into the country. As the UK continues to fall behind in car production, it seems that without government assistance, British car manufacturing may soon be a thing of the past!
A further drop is expected by some following the American government’s announcement that they plan to offer subsidies worth billions of dollars to car manufacturers who can create electric vehicle supply chains throughout the US. The Society of Motor Manufacturers and Traders (SMMT) is concerned that this will absorb a lot of international investment resulting in another hit to the UK industry.
More Issues For UK Car Production
In addition to the pandemic and supply chain issues, the closure of Honda’s factory in Swindon in July 2021 followed by Vauxhall ceasing Astra production at Ellesmere Port in April 2022 has also caused a decrease in the level of British car production.
2022 was a challenging year for UK car manufacturing. However, it is worth keeping in mind that the UK did make more electric vehicles than ever before.
Another blow came when the battery start-up firm, Britishvolt, collapsed recently after running out of money when planning to build an electric car battery plant in Northumberland. As it currently stands, the UK only has one Chinese-owned battery manufacturing facility which is based in Sunderland.
The Future Of UK Car Production
The future may seem uncertain for UK car production right now. The UK government seems to be confident that better times are coming though, suggesting they are determined to make sure that the UK remains one of the best places in the world for automotive manufacturing.
Time will only tell if this is possible but, looking at the current situation, this could be an extremely challenging goal to achieve if things don’t change very soon.
