英國(guó)汽車貿(mào)易報(bào)告

UKAUTOMOTIVETRADE

REPORT2023

OPENROADS

DrivingBritain’sglobalautomotivetrade

CONTENTS

UKAutomotiveison

coursetoreclaimitsposition

asa￡100billion-plustrading

powerhousebytheend

of2023,afigurethat

Covid-19cutbyaquarter

CONTENTS

3FOREWORD

4EXECUTIVESUMMARY

6RECOMMENDATIONS

8CHAPTER1:

UKAUTOMOTIVETRADESNAPSHOT

16CHAPTER2:

EVFOCUS:

FUTUREPROOFINGUKFTAs

22CHAPTER3:

ANEWTRADEPOLICYFORNEWSUPPLYCHAINS

28CHAPTER4:

GLOBALAUTOMOTIVE

TRADEANDTHEROLE

OFGLOBALBRITAIN

40ANNEX

2

THESOCIETYOFMOTORMANUFACTURERSANDTRADERS

FOREWORD

FOREWORD

Theautomotiveindustry’sabilitytonavigateunchartedterrainremainsundiminished:aglobal

pandemic,warinUkraine,prolongedsupplychainshortagesandtheonce-in-a-generationshift

towardselectrification–allinadditiontoBrexit,acost-of-livingcrisisandsoaringinflation.

Allwere,orare,massivechallengesthatwouldtestanyindustry,yetoursectorhasdemonstrateditsresilienceandpathwaytogrowth,growthfirmlydrivenbyglobaltrade.

UKAutomotiveisoncoursetoreclaimitspositionasa￡100billion-plustradingpowerhouse

bytheendof2023,afigurethatCovidcutbyaquarter.Thisunderlinesthesignificantroleplayedbythesectoringeneratingemployment,fosteringgrowthandactingasasignificantcontributortothebroaderUKeconomy.Automotiverepresentednearly12%ofallBritain’smanufactured

goodsinthefirsthalfofthisyearandalmostoneineightUK-builtexports.Theseincludehigh

value,cutting-edgevehiclesshippedtoallcornersoftheworldfromgloballyrenownedbrands,partsandcomponentsfromcompaniessynonymouswithqualityandinnovationand,increasingly,newtechproductsdesignedtomeetchangingmobilityneeds.

Inthispost-pandemicworld,theUKremainsagloballeaderinautomotiveproduction

andexports,withanincreasingnumberofcars,vans,buses,trucks,taxis,specialistandeven

off-highwayvehiclestransitioningtowardszeroemissions.Withrecentsignificantinward

investment,theUK’sexpandingzeroemissionvehiclesupplychainisnotonlyadaptingtochangebutworkingtobecomeagloballeader.

Wehavecommittedtonetzeromobility,notjustasaresponsetoregulatorypressure

orgovernmentcommitment,buttoprovideasustainablefutureforgenerationsahead.

ToachievethisambitionwemusthavefreeandfairtradewithEuropeandotherestablishedandemergingmarketsworldwide.

TheEUisourlargesttradingpartner–receivingalmost60%ofUKpassengervehicleexports

andsupplyingmorethan71%ofthecarsweimport.Sofindingasolutiontopreventtheimposition

oftariffsonelectricvehiclesandbatteriesassetbythecurrentEU-UKTradeandCooperationAgreementrulesoforiginisourmostpressingchallenge.Failuretodosorisksa￡4.3billionhittothesectoracrossEurope,which,ineffect,willaddataxontheveryvehiclesneeded

forustodecarboniseroadtransport.

SafeguardingtradewiththeEUiscriticalbut,asthisreportsetsout,wemustremainfocusedontradearoundtheworld.Thismeansaddressingmanychallenges.Ensuringnewandrevisedfreetradeagreements,especiallywithIndia,SouthKorea,Canada,MexicoandtheGulfstates.

DeliveringenhancedmarketaccessandworkableoriginrequirementsforEVs,batteries

andrelatedcomponents.BuildingonrecentinvestmentwinstodevelopasustainablebatteryandcriticalmineralsupplychaininBritain.Improvingsupportforremanufacturingandrecycling.Enhancingregulatoryengagementwithkeytradingpartnerssooursmallvolumemanufacturersremaincompetitive.Andremainingalerttoanyadverseimpactsfromglobaltradetensions.

Solvethatpuzzleandthebenefitsaretremendous–jobs,growthandprosperityacrosstheUK.Committingtofreeandfairtradeishowwewillspurinvestment,sustaincompetitivenessanddeliverzeroemissionproductsthataddresstheglobalchallengeofclimatechange.

MikeHawesChiefExecutive

TheSocietyofMotorManufacturersandTraders(SMMT)

THESOCIETYOFMOTORMANUFACTURERSANDTRADERS

3

Wales

Carexports:87%

EastMidlands

Carexports:82%

WestMidlands

Carexports:84%

East

65%

exports:

SouthEast

Carexports:82%

2022HIGHLIGHTS

UKAUTOMOTIVE

TRADE:￡94bn

UKCAREXPORTS

BYDESTINATION

EU

■Restoftheworld

OtherEurope

NorthEast

Carexports:70%

NorthWest

Carexports:80%

Car

4

THESOCIETYOFMOTORMANUFACTURERSANDTRADERS

IMPORTSEXPORTS

￡34.4

billion

TOP10CAREXPORTDESTINATIONS2022

●EU57.6%

.USA13.3%

.China8.7%

Japan2.9%

SouthKorea2.0%

Australia1.9%

Turkey1.4%

Canada1.3%

●Mexico0.6%

.UAE0.4%

.Other9.9%

Valueofexports

Automotivemakesup11.8%ofallUKmanufacturedgoodsexports

￡59.4

billion

TOP9CARIMPORTORIGINS2022

●EU71.3%

China9.2%

SouthKorea5.8%

Japan5.8%

.Turkey3.6%

.Mexico1.4%

.SouthAfrica1.3%

.USA0.9%

.Morocco0.7%

Valueofimports

71%ofimportedcarstotheUK

comefromtheEU

97%

Almost97%ofnewbatteryelectricvehicle(BEV)

registrationswereimported

vehiclesinthefirsthalfof2023

30%

Electrifiedvehicleexportsupalmost30% inthefirsthalfof2023(vs2019)

THESOCIETYOFMOTORMANUFACTURERSANDTRADERS

5

EXECUTIVESUMMARY

EVTRADE

Exports

ofEVstoEU

￡5.6bn

Imports

ofEVsfromEU

￡9.7bn

EVRULESOF

ORIGINIMPACT

￡3,400

Newfiguresreveal

tariffthreattoEU-

madeElectricVehiclescouldresultina￡3,400averagepricehikeif

unworkablerulesof

originareimplementedinJanuary

￡3,600

10%tariffswould

alsoadd￡3,600

tocostofBritish-builtEVssoldinEurope,

withconventional

ICEmodelsunaffectedonbothsides.

RECOMMENDATIONS

RECOMMENDATIONSFOR

GOVERNMENTANDINDUSTRY

01TCAORIGINREQUIREMENTSFORBATTERIES

TheUKandtheEUshouldagreeurgentlytodelaytheintroductionoftougher

batteryrulesforthreeyears.

05INTERNATIONAL

CIRCULARECONOMY

Supportthecirculareconomyby

streamliningthetariffsuspension

mechanismanddeviseatailor-madestrategytoreducecostsof

internationalsourcingofmaterialsneededbyremanufacturersand

02ACHIEVEFTAsFITFOREVs

EnsurenewandrevisedFTAsdeliverenhancedmarketaccessandworkableoriginrequirementsforEVs,batteriesandrelatedcomponents.

recyclingcompanies.

06ENGAGEWITHCHINA

Monitorpotentialadverseimpactson

theUKautomotiveindustryfromthe

EU’sinvestigationintoChineseEV

03INCREASEUKVALUE-ADDED

Deviseanationaladvanced

manufacturingplantoattractadditionalinvestmentthroughoutthebattery

supplychainandensuretheautomotivesectorcanfullybenefitfromallUKFTAs.

subsidies.UKmanufacturersshould

supportengagementwithChinaby

providingmeaningfulinsightsintomarketchallenges.Enhancedbilateraldialogue

couldhelpaddressmarketaccessbarriers.

07OPENROADSTOINDIA

04CRITICALMINERALS

NETWORK

Agreenewcriticalmineralspartnershipswithresource-richcountriesandmajorEVmarkets,seekingbothsoftandbinding

commitmentstoencourageinvestmentandenhancesupplychainreliability.

Step-upengagementtoreachabalanced,commerciallymeaningfulagreementwithIndiaprovidingadditionalmarketaccessacrossallautomotiveproductsonthe

basisofworkableoriginrequirements.

6

THESOCIETYOFMOTORMANUFACTURERSANDTRADERS

RECOMMENDATIONS

08TRADECONTINUITY

WITHSOUTHKOREA

Launch,negotiate,finaliseandbringintoeffectamodernisedUK-SouthKoreaFreeTradeAgreementbeforetheexpiryoftheextendedEUcumulationclause.

09COOPERATETOADDRESS

CARBONLEAKAGE

WiththeUKandseveralothercountries

alreadyimplementingEmission

TradingSchemesandconsideringthe

implementationofCBAMssimilartotheEU’s,Europeanautomotivebusinesses

mightbenefitgreatlyfromtherecognitionofequivalentregulatoryregimesandthereductionofadministrativeburdensandadditionalcostsinmovementsofcoveredproductsbetweenthem.

10DEVELOPASUSTAINABLE

SUPPLYCHAIN

EUregulationsoncorporate

sustainabilityarelikelytosetanew

globalbenchmark.Itisessentialfor

automotivebusinessesoperatingin

theUKandinthebroaderEuropean

regiontofamiliarisewithnewand

upcomingobligationsandputinplacethenecessarycompliancemechanisms.

11TRADEWITHTHEGULF

FinalisinganambitiousnewFTAwith

GCCcountriescouldopencommercially

meaningfulopportunitiesiftheparties

agreeonenhancedmarketaccess

commitments.

12BUILDONTHE

ATLANTICDECLARATION

FinalisenegotiationsofaUS-UKcritical

mineralpartnershiptoimprovemarket

accessintheUSforcriticalminerals

extracted,refinedorrecycledintheUK.

13REFORGETRADETIES

INNORTHAMERICA

Concludethenegotiationofupgraded

FTAswithMexicoandCanadaandsecure

anextensionofexistingEUcumulation

clausestoensuretradecontinuityuntil

thenewagreementstakeeffect.

14GOTOBATFORICONIC

BRITISHBRANDS

Enhanceregulatoryengagementwith

keytradingpartnerstoseekadditional

flexibilitiesforSVMsandmitigateagainst

impactsofoverburdensomeregulatory

andbehind-the-borderbarriers.

THESOCIETYOFMOTORMANUFACTURERSANDTRADERS

7

CHAPTER1

UKAUTOMOTIVE

TRADESNAPSHOT

→UKAutomotivedelivered￡94billionintradein2022,withthesectoreyeing

thepossibilityofregainingitsstatusasa￡100billionplustradehubbythe

endof2023.

→TheAutomotivesectorremainspivotaltotheUK’seconomy,representing

11.8%ofallexportsofUKmanufacturedgoodsinthefirstsixmonthsof

2023androadvehiclestoppingthelistofthecountry’smostimported

commodities.

→Theindustryremainsopentotheworld,withtheEUconsolidatingits

positionasthesector’slargesttradingpartnerreceivingalmost60%ofUK

carexportsandsupplyingmorethan71%ofimportednewcars.

8

TOTALAUTOMOTIVETRADE

Despitebeingseverelytestedbyyearsofextraordinary

economicturbulenceandsystemicdisruptions,theUK

automotivesectorremainsamulti-billionpoundtradehub,demonstratedbyitsabilitytodeliver￡94billionintrade

valueattheendof2022–ayearmarredbythefall-outofmultipleglobalandregionalcrises.

Mostimportantly,withimportsandexportsoffinished

vehicles,partsandcomponentsworthsome￡101billion

intradeinthefirsthalfof2023(onarollingyearbasis),

theUKautomotiveindustryseemsfullyontracktoregainitspre-pandemicroleasa￡100billionplustradegeneratorbytheendoftheyear.

UKAutomotiveaspiringtoreclaimitspositionasone

ofBritain’smostvaluedtradehubs,justthreeyearsfrom

theCovid-19pandemic,isatestamenttothestrong

fundamentalsofthesector.Thisincludestheability

ofdomesticmanufacturersandimporterstoadjusttheir

businessoperationsinthefaceofadverseconditions,

ongoingsupplychainissuesandthedeterminationtoremainanopenmarketdespitegrowinginternationalcompetition.

THESOCIETYOFMOTORMANUFACTURERSANDTRADERS

Source:ONS

H12023

(RY)

11.8%

CHAPTER1

Duringthe2020-2022period,unexpectedchallengeshavehinderedtheindustry’sabilitytorecoverquicklyafterthepandemic,withautomotiveexportvaluesfacingthemostsignificantimpacts.

ThepandemicandtheconsequentiallockdownsresultedinwidespreadmarketclosurecausingproductiontohaltintheUKalongsideother

majorautomotivehubs.Despitethegradualshiftfromlockdowntoa

managedriskapproach,thankstothevaccinationprogrammerollout

worldwide,theexpectationsofastrongreboundinsalesandproductionwerefrustratedbysupplyshortages–mostnotablyofsemiconductorsandotherrawmaterials,aswellassystemicstaffshortages.

Furthermore,theintroductionofnewtradebarriersinexchanges

betweentheUKandEUfollowingtheUK’sexitfromtheEuropeanSingleMarketandCustomsUnionin2021hasimpactedthishighlyintegratedautomotivesupplychain.

Morerecently,thefull-scaleinvasionofUkrainelaunchedbyRussiain

February2022furtherexacerbatedproductionchallenges,asexemplifiedbyUkrainianwireharnesssuppliersforcedtostopmanufacturing

operationsovernightandmajorshortagesofUkrainianneongas–a

crucialcommodityintheproductionofchips.Theimpactofsanctions

adoptedinresponsetotheaggression,coupledwithskyrocketing

pricesforenergyandkeymanufacturinginputs,suchaspalladiumand

aluminium,fuelledthemostsignificantinflationarycrisisindecades,withtheUKamongthehardesthit.

ThesechallengescausedmajordisruptionstotheUK

automotiveindustry’scost-sensitivebusinessmodelandcouldhaveresultedinthesystemicmarginalisationofthesectorasasignificantcontributortotheUK’stradebalancesheet.Whilelastyear’soveralltradeperformancewas

drivenbythestrongreboundinautomotiveimportvalues,exportsstruggledtorecovertopre-pandemiclevels.

However,evenin2022,wheninflationarypressure

andtheuniquemarketconditionspushedexportsofbasicpreciousmetalstomorethandoubleinoneyear,UK

automotiveexportscoveredalmost10%ofallexported

manufacturedgoods.Inthefirsthalfof2023,theshareofUKautomotiveexportshasincreasedto11.8%,bringingtheindustryastepclosertothe13%thresholdrecordedbeforethepandemicoutbreak.

Chart1Totalautomotivetradevalue(Motorvehicles,trailers&semi-trailers,parts&components)

TotalSource:ONS

2020

2021

2022

H12023(RY)

Imports

Exports

120

100

40

80

20

60

2019

Billions

THESOCIETYOFMOTORMANUFACTURERSANDTRADERS

2022

15

12

9

6

3

0

2020

2021

10.9%

11.2%

Chart2AutomotiveshareofallUKmanufacturedgoodexports(%)

9.7%

2019

13%

9

Chart3TOP5UKGoodsexportsStandardinternationaltradeclassification(SITC)

Billions0102030405060

Goldnon-monetary

(excludingoresandconcentrates)

23.4

59.7

30.4

18.8

18.5

23.4

15.4

23.4

11..5

20.2

Roadvehicles(includingaircushionvehicles)

31.8

28.4

Powergeneratingmachinery

andequipment

31.1

Petroleum,petroleumproducts

andrelatedmaterials

37.8

Medicinalandpharmaceutical

products

24.0

CHAPTER1

20212022H12023Source:HMRC

EXPORTSOFFINISHEDVEHICLES

Afterthreeyearsofextraordinarymarket

turbulence,roadvehiclesareslowlyregainingtheirtraditionalpositionastheUK’smost

exportedcommodity.

In2022,theenergycrisisandinflationary

pressureonenergyproductsledtoaboom

inexportvaluesofpetroleumandrelated

products,whiletheexceptionalperformanceofgoldexportsappearstobearesponse

fromglobalinvestorstothegeopoliticaland

economiccrisisthatunfoldedaftertheinvasionofUkraine.Despitetwoyearsofsteadygrowthinexportvalues,itisnosurprisethatroad

vehiclesbecametheUK’sthirdmostexportedgoodattheendof2022,withavalueof￡31.8billion.

Asmarketsadjusttotheneweconomic

environment,exportsofgoldareprogressivelynormalisingandtherearesignsthatmotor

vehicleexportshaveregainedmomentumin

thefirsthalfof2023,withavalueofmorethan￡18.8billion,justbelowgoldexports,andthepossibilitytoreturntopre-pandemiclevels

bytheendoftheyear,ifcurrenttrendsaremaintained.

10

Chart4UKvehicleproduction(rollingyearbasis)

CarexportsCVexportsVehicleproduction%carsexported%CVsexportedSource:SMMT

Jan

‘16

Jan

‘17

Jan

‘18

Jan

‘19

Jan

‘20

Jan

‘21

Jan

‘22

Jan

‘23

%

85

80

70

65

60

50

75

55

Millions

0.8

0.6

0.4

0.2

2.0

1.8

1.6

1.2

1.0

1.4

0

THESOCIETYOFMOTORMANUFACTURERSANDTRADERS

CHAPTER1

Chart5Top10carexportdestinationbyvolume

20192021202220231HSource:SMMT

10%

20%

30%

40%

50%

60%

1

EU

2

USA

3

China

4

Japan

5

Australia

6

Turkey

7

SouthKorea

8

Canada

9

UAE

10

Mexico

VolumePremiumSmallVolumeSource:SMMT

(right-handaxis)

2019

2020

2021

2022

Thousands

Chart6UKcarexportsbytype(volume)

Thousands

300

400

200

600

500

30

25

20

10

15

THESOCIETYOFMOTORMANUFACTURERSANDTRADERS

Althoughvaluesareoncoursetoregaintheirpre-pandemiclevel,exportvolumesremainfarbelowtheonemillionunitthresholdrecorded,forthelasttime,inApril2020.

Attheendof2022,justover600,000carswereshipped

globallyfromtheUK.Inthefirsthalfof2023,theindustryhadreporteda7%increaseto650,000exportedunitsonarollingyearbasis.Despitethelatestpositiveperformance,fullrecoveryremainselusive,withexportvolumesin2023(onarollingyearbasis)remaining-38.4%below2019

levels.Furthermore,thelossinexportvolumessince2020wasnotcompensatedbyadditionalsalesforthedomesticmarket,asthesectorremainsfirmlyexport-oriented,withalmosteightoutof10carsproducedintheUKsoldto

customersoverseas.

Supplychaindisruptions,systemicshortagesandbroaderinflationaryimpactscanpartiallyexplainthedisconnect

betweenexportvaluesandvolumes.However,themajor

differenceingrowthrates–withexportvaluesincreasing

by34%andexportvolumesupbyjust7%inthefirsthalf

of2023–pointstoastructuralchangefollowingthelossofHondaandVauxhallAstramodelsandtheensuingreductioninexportsfromvolumemanufactures.Manufacturersare

likelyseekinghigherprofitabilityandareadjustingtothedifferentcoststructuresofloweremissionvehicles,withvehicleassemblersincorporatinghigh-valuebatteries–includingassociatedpartsandcriticalminerals

–andadvancedtechnologiesintotheirfinishedproducts.

Theworld’sfourlargesteconomieshavebeenconsistently

rankedasthetopexportdestinationsforUK-built

passengercars.Althoughtheindustryexportstoallcornersoftheworld,thefourbiggestmarkets–namelytheEU,theUS,ChinaandJapan–haveacumulativeshareofalmost80%ofallUKcarexports.

Amongthebigfour,theEUisconsolidatingitsdominant

position,with59.5%ofallexportedUKcarsshippedtotheblocinthefirsthalfoftheyear(versus57.6%in2022and54.8%in2019).Honda’sdecisiontodiscontinueproductionintheUKresultedinamajordeclineinexportstotheUS

andtheprogressivegrowthintherelativeweightofexportsdestinedfortheEUandothermarkets,withtherelative

weightofexportvolumestotheUSfallingfrom18.9%in

2019to9.5%inthefirsthalfof2023.WiththeexceptionoftheUSandCanada,allotherexportdestinationsinthetop10recordedanincreaseintheirrelativeweightcomparedto2019.China(7.4%),Japan(3.5%),Australia(2.9%),Turkey

(2.7%),SouthKorea(1.8%)andCanada(1.3%)maintainedtheirspotsinthetop10,whiletheUAE(0.8%)andMexico(0.8%)arenotablenewentries,withSwitzerlandandSouthAfricadroppingoutofthelistinthefirsthalfoftheyear.

Thedeclineinexportunitsisdrivenmainlybythereductioninexportsofvolumemanufacturers,notingtheabove

structuralissues.Premiumvehiclemanufacturers

recordedaslightdip,whileexportsfromsmallvolume

manufacturers(SVMs),traditionallyhigh-valueluxury

andsportsvehicles,havefullyrecoveredsince2021.Thesechangescontributedtothedivergingpatternsbetween

exportvaluesandvolumes.

11

CHAPTER1

TheUKautomotiveindustryisavitalpartoftheUK

economy,withadomesticpresenceinregionsacrossthe

countryandanexportfootprintspanningtheglobe.All

UKregionshostingcarassemblyoperationsarestrongly

export-oriented.Thepercentageofcarsproducedfor

exportsineachindividualregionrangesfromaminimum

of65%intheEastofEnglandtopeaksof84%intheWest

Midlandsand87%inWales.

Anexceptiontothesluggishexportvolumetrendisthe

strongreboundinshipmentsofBritish-builtcommercial

vehicles(CVs).Bytheendof2022,theUKwasexporting

almost40%moreCVsthanin2019,withmorethansixout

of10destinedforoverseasmarketsandmorethan66,000

CVsexportedinthefirsthalfof2023(onarollingyear

basis).TheUKCVindustrybenefitsfromtherapidexpansion

ofdeliveryservicesduringandafterthepandemic,with

domesticCVmanufacturerswellpositionedtocapture

marketgrowth.However,withmorethan90%ofCV

exportsdestinedfortheEU,thismarketsegmentremains

highlydependentonsinglemarketdemandcycles.The

diversificationoftheCVexportportfoliomightrepresentan

opportunitytoconsolidatethesector’sexportoutlookand

createeconomiesofscale.

Table1Shareofcarproductionforexportsfromeachregion

NorthEast(England)

NorthWest(England)

YorkshireandTheHumber(England)

EastMidlands(England)

WestMidlands(England)

EastofEngland

London

SouthEast(England)

SouthWest(England)

Wales

Scotland

70%

80%

n/a

82%

84%

65%

n/a

82%

n/a

87%

n/a

12

TheUKautomotivesector

remainsamulti-billionpoundtradehub,demonstrated

byitsabilitytodeliver

￡94billionintradevalueattheendof2022

EUOceaniaAmericaAsiaOthersOtherEuropeAfrica

%

100

80

60

40

20

Source:SMMT

0

Chart7CVexports-destinations(shareallexports)20231H

THESOCIETYOFMOTORMANUFACTURERSANDTRADERS

CHAPTER1

IMPORTSOFFINISHEDVEHICLES

TheUKremainsanopenmarket,withimportedcarscoveringmorethan90%ofallnewcarregistrationsinthefirsthalfof2023andvolumes

increasingtoabove1.6millionunitsonarollingyearbasis.AccordingtoHMRC,roadvehiclesconsistentlytopthelistofthemostimportedcommoditiesbyvalue,withinboundshipmentsworthmorethan￡58.5billionlastyear,aheadofpetroleumproductsandgas.

TheUKreceivesnewcarsfromninedifferenttradingpartners,withtheEUbeingourlargestsuppliercovering71.3%ofallimports.Chinese-builtcarshaveseentheirmarketshareincreasefromlessthan1%in2019toaccountfor9.2%ofallimportsinthefirsthalfof2023–aconsequenceoftherisingelectrificationoftheUK’snewcarmarket.OtherAsian

nationsarealsoperformingwellintheUK,notablySouthKoreaandJapanroundingoutthetopfourimporters.

TheUKlightcommercialvehicle(LCV)marketisalsodominatedby

imports,withtheirshareconsistentlyexceedinga90%marketsharesince2016.ImportedLCVsarepredominantlysourcedfromtheEU

(63.7%),however,Turkeycovers23.2%ofallLCVimportsandremainsamajorvansupplierwithcloselinkstoboththeUKsupplychainandBritishcustomers.

Chart8UKnewcarregistrations-importsvolumeandshare

ImportsshareSource:SMMT

%

2.5

90

2.0

89

1.5

88

1.0

87

0.5

86

85

2019

2020

2021

2022

H12023

(RY)

Import

Total

91

0

Chart10UKnewLCVregistrations-importsvolumeandshare

ImportsshareSource:SMMT

H12023

Thousands

400

350

300

250

200

150

100

50

0

97

96

95

94

93

92

91

90

89

Import

Total

2019

2020

2021

2022

(RY)

THESOCIETYOFMOTORMANUFACTURERSANDTRADERS

Chart9Top9carimportsorigin(shareoftotal)

2019202120221H2023Source:SMMT

10%20%30%40%50%60%70%80%

1EU

2China

3SouthKorea

4Japan

5Turkey

6SouthAfrica

7Mexico

8USA

9Morocco

202120221H2023Source:SMMT

10%

20%

30%

40%

50%

60%

70%

1

EU

2

Turkey

3

SouthAfrica

4

Thailand

5

China

6

SouthKorea

7

Japan

Chart11Top7LCVimportsorigin(shareoftotal)

13

CHAPTER1

TRADEINENGINESANDPARTS

In2022,thecumulativevalueoftradeintypicalpartsandengines

amountedtomorethan￡17.2billion.

Lastyear,theUKturnedoutmorethan1.6millionengines,with57.8%

ofallunitsexportedoverseas.Engineproductionandexportvolumes

haveflatlinedinthefirsthalfof2023,remainingbelowthetraditional

pre-pandemiclevelofmorethan2millionunitsmanufacturedona

rollingyearbasis.

EngineexportsremainasignificantcontributortotheUK’seconomy,

withshipmentsoverseasvaluedatmorethan￡2.1billionin2022.

However,followingyearsofdecline,engineimportsareacceleratingat

afasterpacethanexports,withinboundshipmentsworthmorethan￡1

billionin2022–drivenbya45.5%annualincreaseinimportsfromtheEU.

Similartoengines,tradeincomponentshasnotyetfullyrecovered.In

2022,importsandexportsoftypicalpartsandaccessoriesremained

belowpre-pandemiclevels,despitea7.5%annualincrease,toatotal

valueofmorethan￡14billion.

TheUKsupplychainremainsdeeplyintegratedwithitsclosest

neighbours,astheEUmaintaineditspositionastheUKautomotive

industry’sdominantsupplierandmainexportdestinationforBritish

parts.TradewiththeEUregainedmomentumin2022afterlosingground

compa