Increased EV output highlight of disappointing January UK car production

25 February 2022  

Overall UK car production was down 20.1% to 68,790 units in January, according to figures from the SMMT, making it the the weakest January since 2009, even worse than January 2021. However, one bright spot was that battery electric vehicle (BEV) production rose 37.6% to 6,326 units. Including plug-in hybrids and hybrids, electrified vehicles represented 27.4% of the total, up from 25.4% in 2021.

The overall drop was partly the result of the ongoing global semiconductor shortage. Production for both overseas was down by 17.5%, while production for vehicles intended for the home market was down 30.8%.

SMMT Chief Executive Mike Hawes said: “It’s another torrid start to the year as global supply issues and structural changes squeeze output while model changes impact production scheduling. The UK automotive manufacturing industry is, however, fundamentally strong and recent investment announcements are testament to the potential for growth, not least in terms of rising EV production.”

UK car production estimates have been reduced by -2.4%, to around 979,000 units for 2022. This would still be a 14.4% increase on 2021. Longer term, car production is expected to go over 1 million units from 2023 onwards, and exceed 1.1 million in 2027.