Car production plummets nearly a third

UK car production last year fell to the worst levels since 1984.

According to the Society of Motor Manufacturers, car production declined 29.3% in 2020 to 920,928 units, with December output was down 2.3% to 71,403.

Production for overseas buyers fell 29.1% in the year to 749,038 units, while output for the UK also fell in double-digits, down 30.4% to 171,890. The EU remained the UK’s biggest export destination, taking a 53.5% share, despite volumes falling 30.8% to 400,460 units.

Elsewhere, trade with most of the UK’s other key export partners declined in line with the tough market conditions resulting from the pandemic. Shipments to the US, Japan and Australia all fell, down 33.7%, 21.6% and 21.8% respectively.

Exports to China, however, ended the year up 2.3%, and those to South Korea and Taiwan also rose 3.6% and 16.7% respectively as these nations travelled on different trajectories in dealing with Covid.

Despite the gloom, the UK continued to rollout battery electric (BEV), plug-hybrid (PHEV) and hybrid vehicles (HEV) to buyers at home and around the world. Combined production of these models rose to 18.8% of all cars made in Britain, up from 14.8% a year before, with BEVs increasing to a 4.5% share, up from 3.4%. All told, the UK turned out 172,857 alternatively fuelled vehicles, with 79.6% of these exported.

Mike Hawes, SMMT chief executive, said: “These figures, the worst in a generation, reflect the devastating impact of the pandemic on UK automotive production, with Covid 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.”