UK production of battery electric (BEV), plug-in hybrid (PHEV) and hybrid (HEV) vehicles has continued its recent upward trajectory this September, with combined net 9.9% growth to a record share of 37.8%.
According to the SMMT, BEV output, in particular, grew strongly, up 16.6% to 8,856 units and representing more than one in seven (14.0%) of cars made in September. Year-to-date, UK car factories have turned out a record 52,888 BEVs, up almost a fifth (19.3%) on the first nine months last year, with 78.4% shipped to markets overseas.
Over the past five years, the value of BEV, PHEV and HEV global exports has risen six-fold, from £1.3 billion to £7.9 billion meaning they now represent more than a third (36.1%) of the value of all UK car exports, up from a mere 4.1%. BEVs, in particular, are critical to the future prosperity of the UK, with the value of their exports up a significant 1,457%, from £81.7 million to £1.3 billion, since 2017.
The data also reveals that, in 2021, the value of BEV, PHEV and HEV exports to the EU alone totalled £4.11 billion, just surpassing the value of internal combustion car exports (£4.09bn) and demonstrating the importance of shipping electrified models to our largest trading partner to the sector for jobs and growth. So far in 2022, almost six-in-10 of the UK’s car exports (57.4%) have been for markets in the EU.
Mike Hawes, SMMT chief executive, said, “Billions of pounds and thousands of jobs are dependent on the automotive sector and, increasingly, on electrified vehicle production. Despite the current challenges, our car makers remain resilient and are well placed to ramp up output of the latest, zero emission vehicles which will help drive an economic recovery, create jobs and boost growth. Success is not guaranteed, however, and to realise its potential the UK sector must attract new investment – which means creating competitive investment conditions. Stability, combined with a plan that tackles critical skills shortages, delivers regulatory certainty and brings down the cost of energy in the long-term can help put the UK at the forefront of next generation automotive manufacturing.”
The sector is calling on the new prime minister Rishi Sunak to work together to create a competitive business environment for UK automotive manufacturing. The SMMT says that with the right competitive framework covering energy and business costs, supply chain security, skills, innovation and investment, the industry will not simply recover, but thrive in the global economy.
The SMMT says that new frameworks for energy security and the market, and business taxation, such as the business rates regime, need urgent action if the sector is to attract the investment it sorely needs as overall car production year-to-date remains down -12.6% on 2021 at 547,231 units. The decline is driven by falling exports, which are down -16.9%, although still almost eight in every 10 (78.6%) cars made in Britain is built for overseas markets. The number of cars made for the UK, meanwhile, is up 8.4% year on year to 122,841 units.
Keyword: Electrified models make up 37% of UK car exports in September