UK sees drop in UK car production

According to the trade body, this decline has been driven by the ongoing global shortage of semiconductors, as well as the impact of the war in Ukraine on supply chains, model changes and broader industry structure contributing to a volatile month in terms of output. 

These factors also affected year-on-year export comparisons - with the closure of a major UK car plant in 2021 continuing to impact export figures. This is particularly acute in the US, where 7,752 fewer cars were made in April than a year before. 

The overall picture was mixed, as production output for overseas markets fell by 20.8%, driven by a 68% decline in shipments in the US, and a 10.4% drop in those to Asia, with six in 10 cars being exported heading to the European Union. 

The figures also reveal that, despite the incredibly tough economic backdrop, UK car makers continue to shift focus towards the latest battery-electric, plug-in hybrid and hybrid - technologies that are essential to both cleaner air and net-zero ambitions. 

Of the cars produced in April, 26.4% were electrified - equivalent to 16,010 units - up 2.1% from the same month a year ago. This is boosted by battery electric vehicle output up 38.2%. 

Commenting on the figures, SMMT chief executive Mike Hawes, said: “The UK car industry is exposed to a host of issues that are undermining output and competitiveness. Global chip shortages and supply chain disruption are exacerbated by spiraling energy costs, additional trading costs and slowing global markets. 

“The foundations of the sector are strong and the transition to zero and ultra-low emission vehicles continues apace but we need more policies and measures that support manufacturing and encourage investment into the UK at this most challenging of times.” 

Due to the overall cost of business increasing, the trade body says UK automotive manufacturing urgently needs relief on specific input costs - most notably energy - which is putting UK manufacturers at a “competitive disadvantage”. 

As part of this, automotive manufacturing needs relief equivalent to that afforded to energy-intensive industries, and access to low cost and low carbon energy comparable to European competitors. 

This should be combined with long-term measures to boost investment in research and development, plant and machinery and skills to ensure productivity and competitiveness are assured as the sector transitions to zero-carbon technologies.