UK car production declined sharply in January - SMMT

According to the report from the Society of Motor Manufacturers and Traders (SMMT), UK car production fell -27.3% in January to 86,052 units. With a fall of 32,262, this was the worst January performance since 2009, and a 17th consecutive month of decline. Multiple factors, including the ongoing effects of the pandemic, global supply chain issues, extended shutdowns and friction in the new trading arrangements following the end of the Brexit transition period, affected output.

Car manufacturing for both home and overseas markets was down, to 16,692 and 69,360 units respectively, representing falls of -18.3% and -29.1%. While exports still accounted for more than eight in 10 of all cars made in the month, shipments to major markets the EU, US and Asia all fell by double digits, down -26.2%, 34.5% and -36.1%.

In better news, the growth in UK production of battery electric (BEV), plug-in hybrid (PHEV) and hybrid vehicles (HEV) seen in 2020 continued, with combined output of these vehicles rising 18.9% in January to 21,792 units. This means more than one in four (25.3%) of all cars leaving factory gates was alternatively fuelled, further evidence of the UK’s growing capability in ultra-low and zero emission vehicle manufacturing.