UK car production falls to lowest for 66 years 

UK car production falls to lowest for 66 years 

UK car production – the number of cars made in the UK – fell sharply again last year, sinking to its lowest level since 1956. 

The drop marks a 10% fall from 2021, which itself was a historic low. 

There is a continuing global shortage of semiconductor chips, which has hit production lines. 

But car makers are concerned the UK has not yet got a plan to make the country competitive as a destination for manufacturing investment. 

The government said it was “determined” to ensure the country remains a top global location for car making. 

The Society of Motor Manufacturers and Traders said the UK produced 775,014 cars last year. In 2019, before the Covid pandemic, the UK had made 1.3 million vehicles. 

Manufacturers are hoping that they will hit one million vehicles again in 2025 but getting to pre-pandemic levels would require major investment and new car makers to come to the UK. 

Many firms are worried the UK will fall behind the US and the EU when it comes to offering state aid to manufacturers. 

A bit of US legislation, known as the Inflation Reduction Act, will offer billions in subsidies to car makers who create electric vehicle supply chains in the US.

Mike Hawes, chief executive of the SMMT, said this will “hoover up” a lot of international investment.