Proactive Investors - UK electric vehicle (EV) production soared to record highs in 2022, accounting for nearly a third of all cars made, though overall output fell drastically.
Total vehicle production slumped to a 66-year low, however, with overall production falling almost 10% from 2021, to 775,014, down 40.5% compared to pre-Covid 2019.
In 2021, production fell 5.8% and in 2020 it fell 29.3%.compared to pre-pandemic 2019 when the UK made 1.3mln vehicles, with the decline having started since 2016's peak of 1.71mln, before the Brexit referendum in September of that year.
Fewer cars were also sold in 2022, according to SMMT’s report this month, with just 1.6mln new cars registered, the lowest since 1992.
Battery electric, plug-ins and hybrids represented 30.2% of all cars made during the year, totalling a record 234,066 units, up 4.5% on 2021, as per figures from the Society of Motor Manufacturers and Traders (SMMT).
The UK automotive trade body largely blamed falling output on global chip shortages, needed in their thousands for modern cars, and structural changes within manufacturing companies which are gearing up for a 2030 ban on petrol and diesel car sales.
Domestic output has consistently fallen since 2016 and is some 40.5% off the 1.3mln cars produced prior to the pandemic in 2019.
Nissan, Jaguar Land Rover, MINI, Toyota and Bentley produced the most cars from UK factories, but Nissan was the only manufacturer to see growth on 2021.
Commenting on EV growth, SMMT chief executive Mike Hawes said: “The potential for this sector to deliver economic growth by building more of these zero emission models is self-evident, however, we must make the right decisions now.
“This means shaping a strategy to drive rapid upscaling of UK battery production and the shift to electric vehicles based on the UK automotive sector’s fundamental strengths.”
Looking forward, the trade body forecasted domestic production to rise by 15% in 2023, on the back of easing semiconductor shortages and solid independent outlooks, with the figure passing 1mln units again by 2025.
Ford Motor Company (NYSE:F) laid out plans in early December to supply components for 70% of its European EVs from Merseyside by 2026.
A potential last-minute bid for collapsed battery firm Britishvolt would give a boost to the country's auto supply chain sector.
A lack of public EV charging points presents an issue for the industry though, with Department for Transport figures suggesting infrastructure is failing to meet demand.
According to Labour MPs, government targets for 300,000 public charge points by 2030 will be missed at the current rate, which saw 9,000 units installed last year.