Worst since 1984: UK car production down 29.3% in 2020

28 January 2021  

COVID-19 was one of the main reasons for car production in Britain falling by 29.3% to 920,928 units in 2020, making it the worst year for UK car-making since 1984, according to figures from the SMMT.

Output for December was down 2.3% to 71,403, with component supply issues resulting from border closures forcing some carmakers to slam the brakes even harder in the run-up to Christmas. 

Production for overseas buyers fell 29.1% to 749,038, while output for the UK also fell, down 30.4% to 171,890.

Despite the gloom, combined production of battery electric (BEV), plug-hybrid (PHEV) and hybrid vehicles (HEV) rose to 18.8% of all cars made in Britain, up from 14.8% a year before. BEVs went up  to a 4.5% share, from 3.4% in 2019. In total, the UK produced 172,857 alternatively fuelled vehicles, with 79.6% of these exported.

SMMT Chief Executive Mike Hawes said: “These figures, the worst in a generation, reflect the devastating impact of the pandemic on UK automotive production, with COVID-19 lockdowns depressing demand, shuttering plants and threatening lives and livelihoods. The industry faces 2021 with more optimism, however, with a vaccine being rolled out and clarity on how we trade with Europe, which remains by far our biggest market.

“The immediate challenge is to adapt to the new conditions, to overcome the additional customs burdens and regain our global competitiveness while delivering zero emission transport. We will continue to work with Government to attract investment in battery production and supply chain transformation as we transition to smart and sustainable mobility, supporting jobs and driving economic growth nationwide.”

Meanwhile, the latest independent production outlook forecasts from AutoAnalysis predict UK car production partly to recover to one million units in 2021.