Industry Topics

2023 Automotive Sustainability Report

2022 was a year of two halves for the UK automotive industry in terms of vehicle production and sales. By December 2022, the UK new car market had recorded its fifth consecutive month of growth. However, an improved second half year performance was not enough to offset the declines recorded during the first half of the year. Despite underlying demand, global parts shortages related to the pandemic and war in Ukraine saw overall car and van production fall -6.0% compared to 2021, with registrations of new vehicles down -5.3%.

However, as the UK automotive sector gradually recovers in the aftermath of the Covid-19 pandemic, it is clear that sustainability commitments remain at the heart of manufacturer strategies for growth. In 2022, battery electric vehicles (BEVs) accounted for 16.6% of all new car registrations, surpassing diesel for the first time to become the second most popular powertrain after petrol. More broadly, plug-in vehicles (both BEVs and PHEVs) accounted for 22.9% of new registrations in 2022 – a record high. With hybrid electric vehicles (HEVs) also increasing in number, average CO2 tailpipe emissions fell -6.9% to 111.4g/km.