Electric vehicle production in UK up a fifth in October – www.businessgreen.com | CarTailz

UK production of electric vehicles (EVs) continues to rise, with volumes up by more than a fifth as domestic car production started to grow again in October, according to the latest industry figures released today.

Automakers produced more than 24,000 electric vehicles — including battery electric, hybrid and plug-in hybrid vehicles — last month, up more than 20 percent from September, trade association SMMT said today.

This means that in 2022 to date, UK car factories have produced a record 61,300 battery electric vehicles, an increase of more than 16 per cent over the same period last year, as demand for zero-emission models continues to grow.

It comes on a string of new milestones for the UK’s burgeoning battery car sector, which set a new export record in September when one in seven cars exported from the UK was a pure electric model. Domestic sales are also booming: to date, more than a million plug-in cars have been registered in the UK, with a quarter sold since January alone.

However, despite the positive growth numbers for electric vehicles, there remain significant economic and supply chain headwinds for the UK car and battery sectors as the economy is already suspected to be in recession and trade with Europe and beyond has declined since Brexit.

The UK is struggling to build a robust domestic supply chain for key components such as batteries and semiconductors for electric vehicles.

In particular, high-profile battery manufacturing start-up BritishVolt has faced significant financial challenges as it seeks to implement its plan to build the UK’s first ‘Gigafactory’ for electric car batteries in Northumberland.

UK-based electric van specialist Arrival is also struggling with cash flow as it tries to scale its manufacturing capacity in response to rising demand. The company’s billionaire founder and CEO will reportedly step down today. Denis Sverdlov, who remains a major shareholder in the company, will serve as chairman of the board after being replaced as CEO by former Marvel Entertainment head Peter Cuneo.

Nasdaq-listed Arrival has been forced in recent months to abandon plans to produce electric vans and buses in the UK and instead shift its focus to the US as it struggles with cash flow challenges.

Meanwhile, the ongoing turmoil in the supply chain has also hit the entire automotive industry hard, which in turn threatens to slow the growth of the UK’s electric vehicle sector, according to Mike Hawes, CEO of SMMT.

“British automakers are doing everything in their power to ramp up production of the latest electrified vehicles and help achieve net zero, but more favorable conditions for investment are badly needed and needed – particularly in affordable and sustainable energy and the availability of talent – as part of a supportive framework for car manufacturing,” he said.

The government claims it is pumping billions of pounds into developing the UK supply chain and charging network for electric vehicles, which has helped spur demand for electric vehicles.

However, industry insiders remain frustrated at the level of support after a number of leading car companies opted to locate new electric vehicle production lines in Europe. The government’s decision to cut subsidies for new electric vehicles and the Treasury Department’s announcement last week that vehicle excise duty will apply to electric vehicles from 2025 have also drawn criticism, with activists stressing that the introduction of electric vehicles in Britain lags behind neighboring markets like Germany. Netherlands and Norway.

In related news, London Mayor Sadiq Khan today confirmed that the capital’s Ultra Low Emission Zone, which levies charges on older and more polluting vehicles, is to be extended city-wide.

Under the plans, from August 29 next year, drivers of the most polluting cars will have to pay £12.50 a day to reach the Greater London Authority limit.

“The ULEZ has been transformative so far, reducing pollution levels in central London by almost half,” said Khan. “But there is still far too much toxic air pollution, which permanently damages the health of young Londoners and results in thousands of early deaths each year, with most deaths in the outer London boroughs.”

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