2022 is the worst year for UK car manufacturing in decades. However, the sector hopes to rebound

According to new data, 2022 was the worst year of UK car production since 1992.

The Society of Motor Manufacturers and Dealers (SMMT) has figures that show that total vehicle registrations reached 1.61 million in 2022. This is a significant increase from 1.59 million in 1992.

The pandemic’s long-lasting effects on automakers resulted in a drop in production of 700,000 units last year.

Mike Howes, CEO of SMMT, stated that manufacturers have had difficulty making vehicles in sufficient quantities primarily due to a shortage of semiconductors. But there is another shortage.”

The trade body said that China’s lockdowns and rising logistics and material costs were partly to blame.

SMMT however expects that 2023 will see the UK’s car industry recover as some supply chain issues start to ease. The trade body expects growth of 15 per cent this year, which would be worth an additional £10 billion.

Hawes claims that the cost-of living crisis will be mitigated by the increased demand for new cars.

“There is no doubt that in a recession there will be weak demand.” chief executive officer added. “But we have a lot to recover.”

Last year, 22 percent of new car registrations were battery-powered vehicles, surpassing diesels.

However, the government’s plans of introducing a vehicle excise duty (VED), on electric vehicles (EV), as well as the costly car supplement are a major barrier to EV uptake.

Hawes stated, “We understand that VED applies to electric vehicles starting in 2025 at an unprecedented rate.”

“But asking for a costly car grant is even more disappointing.”

We have reached out to the Treasury Department for comment.