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The number of cars built in the UK dropped by 29.3 per cent in 2020 due to Covid-19. Only 920,928 cars were produced - the lowest number since 1984.
Annual figures from the Society of Motor Manufacturers and Traders (SMMT) show production fell 2.3 per cent in December 2020, to 71,403 units, confirming fears in the industry that 2020 would see less than a million cars built in the UK for the first time since the aftermath of the global financial crisis in 2009.
Production for overseas buyers fell 29.1 per cent to 749,038 units in 2020, while manufacturing for the UK market was down 30.4 per cent, to 171,890 units. Despite the pandemic, more than eight in 10 cars built in the UK last year were sent overseas. The EU remained the biggest market, taking 53.5 per cent of all cars built in the UK.
The first lockdown in March 2020 saw car factories across the country grind to a halt, unable to resume production until precautionary measures against Covid-19 had been put in place. This was compounded by the closure of car showrooms, which have closed once again during the current lockdown, contributing to a 29.4 per cent fall in new car registrations last year.
The SMMT says the recovery of UK car production depends on how long lockdown restrictions last - both in the UK and abroad - and when dealerships can reopen. Manufacturers also need to come to terms with “more complicated” post-Brexit trade agreements.
SMMT chief executive Mike Hawes said, however, that the automotive industry is catered for “pretty well” by the UK-EU free trade agreement, which avoided the Brexit transition period ending on a no deal basis, and allowed the tariff-free trade of cars to continue between the UK and the European Union.
Meanwhile, combined production of electric, plug-in hybrid and conventional hybrid vehicles (excluding mild hybrids) rose to 18.8 per cent of all cars made in the UK in 2020 - up from 14.8 per cent the previous year. EVs in particular saw their share rise from 3.4 per cent in 2019 to 4.5 per cent last year.
Commenting on the overall annual decline of UK car production, Hawes 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.”
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Annual figures from the Society of Motor Manufacturers and Traders (SMMT) show production fell 2.3 per cent in December 2020, to 71,403 units, confirming fears in the industry that 2020 would see less than a million cars built in the UK for the first time since the aftermath of the global financial crisis in 2009.
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Production for overseas buyers fell 29.1 per cent to 749,038 units in 2020, while manufacturing for the UK market was down 30.4 per cent, to 171,890 units. Despite the pandemic, more than eight in 10 cars built in the UK last year were sent overseas. The EU remained the biggest market, taking 53.5 per cent of all cars built in the UK.
The first lockdown in March 2020 saw car factories across the country grind to a halt, unable to resume production until precautionary measures against Covid-19 had been put in place. This was compounded by the closure of car showrooms, which have closed once again during the current lockdown, contributing to a 29.4 per cent fall in new car registrations last year.
The SMMT says the recovery of UK car production depends on how long lockdown restrictions last - both in the UK and abroad - and when dealerships can reopen. Manufacturers also need to come to terms with “more complicated” post-Brexit trade agreements.
SMMT chief executive Mike Hawes said, however, that the automotive industry is catered for “pretty well” by the UK-EU free trade agreement, which avoided the Brexit transition period ending on a no deal basis, and allowed the tariff-free trade of cars to continue between the UK and the European Union.
Meanwhile, combined production of electric, plug-in hybrid and conventional hybrid vehicles (excluding mild hybrids) rose to 18.8 per cent of all cars made in the UK in 2020 - up from 14.8 per cent the previous year. EVs in particular saw their share rise from 3.4 per cent in 2019 to 4.5 per cent last year.
Commenting on the overall annual decline of UK car production, Hawes 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.”
Subscribe to Auto Express for the best car news and reviews...
Continue reading...