UK car production FALLS yet again in March – and down by a third this year

UK car production declined in March 2022 by 34.4 per cent, with production so far in 2022 down by 32.4 per cent.

Despite car production in the UK being badly affected by Covid in 2021, 2022 is proving an even more torrid time for car makers as production continues to be hampered by a supply chain shortage on ‘Chips’ and more, with Ukraine adding to those woes.

Despite the Covid impact in 2021, production in 2022 is already down by 32.4 per cent in the first quarter, with almost 100,000 fewer cars produced, and March itself was still in line with that quarterly fall with numbers down by 32.4 per cent on last year too.

The March 2022 numbers are the worst since the financial crisis in 2009 and are, in the main, down to a big drop in cars built for export, with car production for the UK market actually up by 4.3 per cent.

The big drop in export production – down by 41.4 per cent in March and 35 per cent so far this year – is largely due to Honda’s Swindon Plant closing, with EU exports taking the majority (67 per cent) of the output and the US and China 8.2 per cent and 6.6 per cent respectively.

Mike Hawes, SMMT CEO, said:

Two years after the start of the pandemic, automotive production is still suffering badly, with nearly 100,000 units lost in the first quarter. Recovery has not yet begun and, with a backdrop of an increasingly difficult economic environment, including escalating energy costs, urgent action is needed to protect the competitiveness of UK manufacturing. We want the UK to be at the forefront of the transition to electrified vehicles, not just as a market but as a manufacturer so action is urgently needed if we are to safeguard jobs and livelihood.