SMMT: Manufacturing down in September as UK Auto seeks stability to maintain file £7.9bn EV exports


UK automotive manufacturing output declined by -6.0% in September, following 4 consecutive months of development, based on the most recent figures printed as we speak by the Society of Motor Producers and Merchants (SMMT)

UK automotive manufacturing output declined by -6.0% in September, following 4 consecutive months of development, based on the most recent figures printed as we speak by the Society of Motor Producers and Merchants (SMMT). 63,125 fashions rolled off manufacturing unit strains, with output once more restricted by extreme provide chain points affecting producers, driving volumes down by -47.7% from the 120,729 automobiles in-built the identical month in pre-Covid 2019.

This September, exports declined -7.4% to 48,956 models, pushed by reductions in shipments to the EU, US and China, though exports elevated to South Korea, Australia and Turkey. The variety of automobiles constructed for the UK market, in the meantime, additionally fell barely, down -0.9% to 14,169 models. Regardless of the general decline, UK manufacturing of battery electrical (BEV), plug-in hybrid (PHEV) and hybrid (HEV) autos continued its current upward trajectory, with mixed web 9.9% development to a file share of 37.8%.1

BEV output, particularly, grew strongly, up 16.6% to eight,856 models and representing multiple in seven (14.0%) of automobiles made in September. 12 months-to-date, UK automotive factories have turned out a file 52,888 BEVs, up nearly a fifth (19.3%) on the primary 9 months final yr and proof of the UK’s functionality in making cutting-edge, zero emission autos which can be in robust demand world wide, with 78.4% shipped to markets abroad.

The figures come as contemporary SMMT evaluation confirms the more and more necessary position of electrified car manufacturing to the UK financial system, particularly the worth of exports.2 Over the previous 5 years, the worth of BEV, PHEV and HEV world exports has risen six-fold, from £1.3 billion to £7.9 billion that means they now characterize greater than a 3rd (36.1%) of the worth of all UK automotive exports, up from a mere 4.1%. BEVs, particularly, are crucial to the longer term prosperity of the UK, with the worth of their exports up a major 1,457%, from £81.7 million to £1.3 billion, since 2017.

The info additionally reveals that, in 2021, the worth of BEV, PHEV and HEV exports to the EU alone totalled £4.11 billion, simply surpassing the worth of inner combustion automotive exports (£4.09bn) and demonstrating the significance of delivery electrified fashions to our largest buying and selling accomplice to the sector for jobs and development. Up to now in 2022, nearly six-in-10 of the UK’s automotive exports (57.4%) have been for markets within the EU.

Mike Hawes, SMMT chief government, mentioned,

Billions of kilos and hundreds of jobs are depending on the automotive sector and, more and more, on electrified car manufacturing. Regardless of the present challenges, our automotive makers stay resilient and are properly positioned to ramp up output of the most recent, zero emission autos which is able to assist drive an financial restoration, create jobs and enhance development. Success just isn’t assured, nonetheless, and to grasp its potential the UK sector should appeal to new funding – which implies creating aggressive funding situations. Stability, mixed with a plan that tackles crucial expertise shortages, delivers regulatory certainty and brings down the price of power within the long-term will help put the UK on the forefront of subsequent era automotive manufacturing.

Within the week the UK will get a brand new Prime Minister, the sector is asking on authorities to work collectively to create a aggressive enterprise atmosphere for UK automotive manufacturing. With the fitting aggressive framework masking power and enterprise prices, provide chain safety, expertise, innovation and funding, the trade is not going to merely get well, however thrive within the world financial system.

New frameworks for power safety and the market, and enterprise taxation, such because the enterprise charges regime, want pressing motion if the sector is to draw the funding it sorely wants as general automotive manufacturing year-to-date stays down -12.6% on 2021 at 547,231 models. The decline is pushed by falling exports, that are down -16.9%, though nonetheless nearly eight in each 10 (78.6%) automobiles made in Britain is constructed for abroad markets. The variety of automobiles made for the UK, in the meantime, is up 8.4% yr on yr to 122,841 models.

1 UK manufacturing of BEVs, PHEVs and HEVs: Sep 2021 21,728 vs Sep 2022 23,885
2 SMMT calculations based mostly on ONS, HMRC and SMMT knowledge and masking the interval 2017-2021

SOURCE: SMMT


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