UK car production: domestic sales & exports 2003-2022

In 2022, demand for UK-built cars dropped by almost eight percent year-on-year to some 775,000 units. The United Kingdom exports nearly eight out of 10 cars assembled in UK plants. 

Vulnerability to trade disruptions

Sales and exports of UK-manufactured vehicles began to fall in 2016. Slumping investments amid Brexit fears, as well as higher costs of production, are likely to have contributed to a slowdown in demand. Since the UK’s referendum on membership of the European Union, the British pound has fallen in value. This may have been expected to be good news for exporters, who garner more interest with relatively cheaper products. However, the weak pound is unfavorable for vehicle manufacturers due to their international supply chains. The European Union is the UK auto industry's leading trade partner, accounting for roughly 80 percent of component imports. EU markets also account for the majority of UK car exports.

Impact of the coronavirus pandemic

European sales of new passenger cars have struggled to recover from the drop recorded during the COVID-19 pandemic, impacting not only domestic UK sales but its exports towards its main trade partner. In 2023, nearly a quarter of UK consumers in the Statista Consumer Insights survey reported they intended to purchase a new car, a share slightly higher than in 2022 and 2021. However, despite this increase in consumer interest, the UK automotive industry had to contend with raw material price increases, motor fuel price inflation, and supply chain shortages.