UK automotive manufacturing declined -32.4% through the first three months of 2022, with virtually 100,000 fewer models made than in the identical interval final 12 months, in keeping with the most recent figures launched at the moment by the Society of Motor Producers and Merchants (SMMT)
UK automotive manufacturing declined -32.4% through the first three months of 2022, with virtually 100,000 fewer models made than in the identical interval final 12 months, in keeping with the most recent figures launched at the moment by the Society of Motor Producers and Merchants (SMMT). With manufacturing volumes nonetheless constrained by the continued world scarcity of semiconductors and different parts, 207,347 new vehicles had been constructed through the first quarter, down from 306,558 in pandemic-affected Q1 2021.
Output within the final month of the quarter fell by greater than a 3rd, down by -33.4% year-on-year, with 76,900 models made in contrast with 115,498 in the identical month final 12 months. This decline, ensuing within the weakest March because the monetary disaster in 2009,1 was pushed primarily by a lower in manufacturing for abroad markets, which fell by -41.4%.
Exports to the US noticed the best lower throughout March, dropping by -63.8% year-on-year, largely because of the closure of a serious plant in Swindon in July 2021 which manufactured for the US market, whereas exports to the EU declined by -24.5%.
Regardless of this, seven in 10 vehicles (72.5%) made within the UK final month had been constructed for export, with the EU taking the bulk (67.0%), adopted by the US (8.2%) and China (6.6%). Manufacturing for the home market, in the meantime, elevated modestly by 4.3%, equal to 864 further models. Over the course of the primary quarter, outputs for each export and the UK home markets fell by -35.0% and -20.3% respectively.
Manufacturing volumes stay constricted with the continued world semiconductor scarcity, the Ukraine disaster exacerbating components provide challenges and producers dealing with an more and more difficult financial setting with rising vitality prices and different inflationary components.
To make sure the UK stays a aggressive setting through which the most recent and greenest automobiles may be ‘Made in Britain’, the UK automotive trade is looking for reduction on vitality prices equal to that afforded vitality intensive industries and entry to low value and low carbon vitality, corresponding to European rivals.
Mike Hawes, SMMT Chief Government, mentioned,
Two years after the beginning of the pandemic, automotive manufacturing continues to be struggling badly, with almost 100,000 models misplaced within the first quarter. Restoration has not but begun and, with a backdrop of an more and more troublesome financial setting, together with escalating vitality prices, pressing motion is required to guard the competitiveness of UK manufacturing. We would like the UK to be on the forefront of the transition to electrified automobiles, not simply as a market however as a producer so motion is urgently wanted if we’re to safeguard jobs and livelihoods.
1. March 2009: 61,829 models.