- UK car manufacturing output falls -29.3% in 2020 to 920,928
units, the lowest total since 1984.
- Production for UK and overseas markets declines -30.4% and
-29.1% but more than eight in 10 cars still head abroad.
- Latest independent outlook forecasts car output to reach
one million units in 2021, but much depends on Covid recovery,
market confidence and new cross-channel rules.
LONDON, Jan. 28, 2021 /PRNewswire/ -- UK car production
declined -29.3% in 2020, to 920,928 units, according to the latest
figures issued today by the Society of Motor Manufacturers and
Traders (SMMT). December, output was down -2.3% to 71,403, with
some firms affected by border closures and thus component supply
issues. This rounded off a dreadful year, the worst since 1984 for
UK car makers, with the pandemic chiefly responsible for the
decline.[1] Manufacturing operations were severely
disrupted throughout 2020, with lockdowns and social distancing
measures restricting factory output, Brexit uncertainty
continuing until Christmas Eve and depressed market demand in key
export destinations.
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. Even amid the global pandemic, exports
continued to drive UK car manufacturing, however, with more than
eight in 10 of all cars made shipped overseas. Reinforcing the
importance of avoiding 'no deal' tariffs with Europe, 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, evidence of the country's existing capability in
building the vehicles essential to a Net-Zero
future.
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."
Meanwhile, the latest independent production outlook forecasts
UK car production partly to recover in 2021 to one million
units.[2] Much, however, will depend on the extent of
Covid measures here and abroad and the speed with which showrooms
can reopen. In addition, manufacturers are coming to terms with new
trading arrangements between GB and the EU, arrangements that are
much more complicated than previously, despite the avoidance of 'no
deal'.
With more onerous procedures to ensure customs compliance, the
industry's ability to attract future investment – and increase
volumes - depends on maintaining its competitiveness. 2020 saw
£3.23 billion of automotive investment publicly announced for the
UK, however over 80% of this amount was attributable to one company
committing to a battery Gigafactory.[3] More commitments
of this nature will be essential for the future of a sector that is
the country's largest exporter of goods, turns over £78.9 billion
annually and employs more than 180,000 people directly with many
more across retail and other indirect sectors.[4]
Notes to editors
- Output at lowest level since 1984 – 908,906 cars.
- Independent production outlook by AutoAnalysis January 2021
- SMMT calculations based on new, publically announced investment
decisions in 2020 covering genuine commitments to fresh spend on
new product, tooling, equipment or facilities.
- SMMT Motor Industry Facts 2020 -
https://www.smmt.co.uk/reports/smmt-motor-industry-facts-2020/
Hi-res charts available via Dropbox:
https://www.dropbox.com/sh/egywnc6brz9csjl/AAB4UgUFvQvH_gU_RXyphPtva?dl=0
Photo:
https://mma.prnewswire.com/media/1427216/UK_car_production_2020_table.jpg