For years, the perception has been that the UK is no longer a major player in car production, especially when compared to countries like Germany, France, and Italy. The post-war years saw the UK as the world’s largest car exporter, but over the decades, this advantage slowly diminished. Competition increased significantly, particularly after the UK helped rebuild the German automotive industry post-WWII, which gained access to a much larger domestic market. Meanwhile, the French car market was boosted by a strong national preference for locally made vehicles.
The 1950s and 1960s saw the rise of American imports, followed by the Japanese in the 1970s. Unfortunately, UK car manufacturers such as Austin, Morris, and Rover suffered from poor build quality and a lack of export appeal. In the 1990s and 2000s, Korean manufacturers, inspired by an Englishman, entered the market, and now the Chinese are offering electrified products that rival anything from previous manufacturers.
Despite these challenges, Japanese companies like Toyota, Honda, and Nissan started manufacturing in the UK during the 1980s, lured by the country’s stable environment, the English language, a welcoming government, and a thriving fleet market. This led to a rebirth of the UK car industry. The arrival of these foreign manufacturers helped resolve union issues that had previously plagued UK car-making. The Sunderland plant became a jewel for Nissan, and Honda’s plants in Swindon and Derby also thrived.
In 2016, UK car manufacturing hit a 17-year record of 1.72 million units, and there was optimism about reaching 2 million. However, Brexit, which began to take effect in 2017, led to a downturn. By 2022, production had dropped to just 775,000 units, a far cry from the 1.92 million record set in 1972. The situation worsened with the Covid-19 pandemic and the disruption caused by the Russian invasion of Ukraine, which significantly impacted parts supply chains, particularly wiring looms.
Despite these setbacks, UK car manufacturing has made a strong recovery. The industry has seen an impressive 20% increase in car registrations, bringing it closer to the 2 million mark expected for the decade. While sales numbers like those of 2.7 million in the past are unlikely to return, the UK is seeing a resurgence in the value of the cars produced. Notable successes include the Nissan Qashqai, which is not only made in the UK but also developed there, with 75% of its units exported. The Mini, produced in Oxford, and the Range Rover, with an average retail price of over £100,000, have contributed significantly to the industry’s growth.
The UK’s automotive exports are now worth £47 billion, making car manufacturing one of the country’s top export earners. The UK also has a well-trained workforce capable of adapting to new technologies like electric vehicle assembly. The country is home to 22 dedicated automotive research and development centres, many connected to universities, fostering innovation and collaboration.
While challenges remain, such as high energy costs for manufacturers, the UK automotive industry has a bright future ahead. The government’s focus on renewable energy and more rational tax policies could help alleviate some of the industry’s burdens. The development of artificial intelligence and autonomous driving technologies presents further opportunities for the UK to lead globally, with companies like Wayve, Oxa, and Aurrigo already making strides in these areas.
The UK car manufacturing sector is on the rise again, with impressive exports, technological advancements, and a well-prepared workforce leading the way. The industry’s ability to adapt and innovate means it will remain a key player in the global automotive market for years to come.
Surface Transforms plc (LON:SCE) is a manufacturer of next-generation carbon-ceramic brake discs for automotive and aircraft applications and has been certified to IS9001-2000 since 2008 and was certified to TS16949 automotive quality accreditation and AS9100C aerospace quality accreditation in 2015.
