Following a year of disruption, restrictions and some noteworthy departures, Alex Grant finds out how healthy the Welsh automotive sector is looking, and the innovations putting it on the map.
Changing Market
For most people working in the automotive industry, 2020 is a year to forget. The sudden onset of Covid-19 restrictions at the end of the first quarter stalled factories, pushed employees to work at home and shuttered dealerships nationwide. Furthered by ongoing financial uncertainty, the UK’s car market recorded its lowest whole-year volumes since 1992, with 680,076 fewer registrations than in 2019 – a 29.4% drop, according to the Society of Motor Manufacturers and Traders. Vans, by comparison, proved relatively buoyant as home-bound consumers embraced home delivery.
The Welsh Government took a cautious approach throughout, following local infection and hospitalisation rates. Having closed with the first lockdown in March, dealers in Wales re-opened on 22 June, three weeks later than their counterparts in England, but had closed again when the fortnight-long ‘firebreak’ restrictions were introduced on 23 October. As cases surged again in the run-up to Christmas, Wales entered its third national lockdown on 19 December, two weeks ahead of the same actions being taken in England.
SMMT registration figures for Wales are skewed as they don’t count leased or hired vehicles operated locally but registered elsewhere. However, the Welsh new car market declined 24.7% on 2019 (to 59,594 units), faring slightly better than the national average. The top two best-selling models accounted for more than 10% of registrations, while the MG ZS – bolstered by the popularity of its electric variant – ranked third.
Top 10 New Car Registrations in Wales (Calendar Year 2020)
1 Vauxhall Corsa - 4,254
2 Ford Fiesta -2,080
3 MG ZS - 1,517
4 Ford Focus - 1,440
5 Vauxhall Grandland X - 1,327
6 Ford Puma - 1,320
7 Volkswagen Golf - 1,133
8 Toyota Yaris - 1,049
9 Nissan Qashqai - 1,028
10 Vauxhall Crossland X - 1,020
Source: SMMT
Restrictions on non-essential retail were relaxed on 12 April 2021, enabling dealers open again – including Californian electric vehicle manufacturer Tesla’s first sales and service centre in Wales. But as the dust appears to be settling on Covid-19, dealers are facing new challenges as customers return to showrooms. A global shortage of the semi-conductor chips required in everything from engine control units to audio systems and safety technology looks likely to suppress vehicle supply at least until the autumn. Signs that 2021 could shape up as another year the industry will want to forget.
For most people working in the automotive industry, 2020 is a year to forget. The sudden onset of Covid-19 restrictions at the end of the first quarter stalled factories, pushed employees to work at home and shuttered dealerships nationwide. Furthered by ongoing financial uncertainty, the UK’s car market recorded its lowest whole-year volumes since 1992, with 680,076 fewer registrations than in 2019 – a 29.4% drop, according to the Society of Motor Manufacturers and Traders. Vans, by comparison, proved relatively buoyant as home-bound consumers embraced home delivery.
The Welsh Government took a cautious approach throughout, following local infection and hospitalisation rates. Having closed with the first lockdown in March, dealers in Wales re-opened on 22 June, three weeks later than their counterparts in England, but had closed again when the fortnight-long ‘firebreak’ restrictions were introduced on 23 October. As cases surged again in the run-up to Christmas, Wales entered its third national lockdown on 19 December, two weeks ahead of the same actions being taken in England.
SMMT registration figures for Wales are skewed as they don’t count leased or hired vehicles operated locally but registered elsewhere. However, the Welsh new car market declined 24.7% on 2019 (to 59,594 units), faring slightly better than the national average. The top two best-selling models accounted for more than 10% of registrations, while the MG ZS – bolstered by the popularity of its electric variant – ranked third.
Top 10 New Car Registrations in Wales (Calendar Year 2020)
1 Vauxhall Corsa - 4,254
2 Ford Fiesta -2,080
3 MG ZS - 1,517
4 Ford Focus - 1,440
5 Vauxhall Grandland X - 1,327
6 Ford Puma - 1,320
7 Volkswagen Golf - 1,133
8 Toyota Yaris - 1,049
9 Nissan Qashqai - 1,028
10 Vauxhall Crossland X - 1,020
Source: SMMT
Restrictions on non-essential retail were relaxed on 12 April 2021, enabling dealers open again – including Californian electric vehicle manufacturer Tesla’s first sales and service centre in Wales. But as the dust appears to be settling on Covid-19, dealers are facing new challenges as customers return to showrooms. A global shortage of the semi-conductor chips required in everything from engine control units to audio systems and safety technology looks likely to suppress vehicle supply at least until the autumn. Signs that 2021 could shape up as another year the industry will want to forget.
Motorsport Takes a Hit
With outdoor events restricted to 30 people since March 2020, motorsport encountered similar challenges to the embattled hospitality sector during the Covid-19 pandemic. Pembrey circuit hosted no competitive race meetings in 2020, while Anglesey and Llandow stayed closed to spectators but still held events where possible, and provided testing sessions for businesses.
Wales Rally GB was also affected, becoming one of six cancelled rounds of the FIA World Rally Championship during 2020 and not set to return until 2022 at the earliest. However, Welsh driver Elfyn Evans continued to set a high bar for other competitors despite the ever-changing calendar.
During his debut season with the Toyota Gazoo Racing World Rally Team Evans won two rounds of the 2020 championship and came second in the driver’s championship. It’s form he’s continued in 2021; having collected Rally Driver of the Year accolade at the Autosport awards in December, Evans ranks third in the championship after three rounds and a close finish in Croatia. Regardless of restrictions, it’s a performance worth watching closely.
With outdoor events restricted to 30 people since March 2020, motorsport encountered similar challenges to the embattled hospitality sector during the Covid-19 pandemic. Pembrey circuit hosted no competitive race meetings in 2020, while Anglesey and Llandow stayed closed to spectators but still held events where possible, and provided testing sessions for businesses.
Wales Rally GB was also affected, becoming one of six cancelled rounds of the FIA World Rally Championship during 2020 and not set to return until 2022 at the earliest. However, Welsh driver Elfyn Evans continued to set a high bar for other competitors despite the ever-changing calendar.
During his debut season with the Toyota Gazoo Racing World Rally Team Evans won two rounds of the 2020 championship and came second in the driver’s championship. It’s form he’s continued in 2021; having collected Rally Driver of the Year accolade at the Autosport awards in December, Evans ranks third in the championship after three rounds and a close finish in Croatia. Regardless of restrictions, it’s a performance worth watching closely.
Specialist Manufacturing
The closure of Ford’s 41-year-old Bridgend plant in September 2020 had been expected; resulting from pan-European restructuring as demand for the engines produced there declined and its supply contract with Jaguar Land Rover came to an end. However, the region also unexpectedly lost out on battery manufacturer Britisvolt and Ineos’s rugged Grenadier 4x4 in the latter half of the year. The latter will be built in Hambach, France, close to a supply chain which includes BMW Group engine plants and, potentially, the fruits of a hydrogen fuel cell partnership with Rüsselsheim-based Hyundai Motor Group.
There were, however, some success stories nearby. Aston Martin began series production of the DBX SUV at its facility in St Athan, reaching full capacity in the third quarter of 2020. The newcomer is expected to account for almost two third of its global sales by the middle of the decade, with 80% of production exported to markets worldwide and 750 new jobs created on site. A recent financial presentation suggests it will also be the basis of other variants, and the DBX itself will be an early adopter of electrified powertrains due from 2023/24. Those plans are accelerating under a technology partnership with Daimler AG.
South Wales will also host the revival of TVR, known for being based in Blackpool but soon to be building an all-new Griffith sports car in the Ebbw Vale Enterprise Zone. Groundwork began on the former Tech-Board building in January, with the conversion set to include facilities for developing prototypes on site. The carmaker claims several thousand deposits have already been taken for Griffith, which features a 5.0-litre V8 engine and lightweight chassis engineered by Gordon Murray Design. Testing of its first prototype is already underway.
Nurturing Future Technology
A sustainable future for the automotive sector relies on expertise in emerging technology, and South Wales is set to become a hub for forward-looking research and development, backed by government funding.
Announced in March 2021, the 5G Wales Unlocked project will fund high-speed data connections across Blaenau Gwent and Monmouthshire, in turn laying foundations for ResilientWorks; a £7m campus for testing connected and autonomous vehicles and enerhy infrastructure. The site is on the doorstep of the Welsh Government’s £100m Automotive Technology Park in Rhydy-y-Blew, and will include a track and street complex for testing increasingly automated vehicle technology and connected transport services.
Nearby, Abergavenny-based Riversimple is making strides towards production of the Rasa - a two-seat, lightweight electric car which produces its own electricity using a hydrogen fuel cell. The company is building a small fleet to begin testing with members of the public, but recently signed a memorandum of understanding with Siemens to begin series production in 2023, followed by a light van version, at a rate of 5,000 units per year.
Greener hydrogen production is enjoying a renewed focus as part of Prime Minister Boris Johnson’s Ten Point Plan for a Green Industrial Revolution. This will use electricity from renewables to power large-scale electrolysers separating hydrogen from water, essentially turning it into an energy storage medium. Riversimple sees opportunities to form clusters of users, including trucks and buses, and create a business case for hydrogen suppliers to open fuelling stations nearby. Limited infrastructure – there are only nine hydrogen stations nationwide – is a significant stumbling block for fuel cell vehicles.
In Cardiff, vintage car restoration specialist Hemmels is also looking to the future. The company presented a battery-electric conversion for the Mercedes-Benz ‘Pagoda’ SL, offering a 200-mile range with the ability to recharge to 70% in less than an hour. A run of 12 will be built for customers in the UK and USA during 2021, each the result of a 4,000-hour restoration and finished in a bespoke colour and trim combination. It’s expertise which is increasingly valued internationally.
The closure of Ford’s 41-year-old Bridgend plant in September 2020 had been expected; resulting from pan-European restructuring as demand for the engines produced there declined and its supply contract with Jaguar Land Rover came to an end. However, the region also unexpectedly lost out on battery manufacturer Britisvolt and Ineos’s rugged Grenadier 4x4 in the latter half of the year. The latter will be built in Hambach, France, close to a supply chain which includes BMW Group engine plants and, potentially, the fruits of a hydrogen fuel cell partnership with Rüsselsheim-based Hyundai Motor Group.
There were, however, some success stories nearby. Aston Martin began series production of the DBX SUV at its facility in St Athan, reaching full capacity in the third quarter of 2020. The newcomer is expected to account for almost two third of its global sales by the middle of the decade, with 80% of production exported to markets worldwide and 750 new jobs created on site. A recent financial presentation suggests it will also be the basis of other variants, and the DBX itself will be an early adopter of electrified powertrains due from 2023/24. Those plans are accelerating under a technology partnership with Daimler AG.
South Wales will also host the revival of TVR, known for being based in Blackpool but soon to be building an all-new Griffith sports car in the Ebbw Vale Enterprise Zone. Groundwork began on the former Tech-Board building in January, with the conversion set to include facilities for developing prototypes on site. The carmaker claims several thousand deposits have already been taken for Griffith, which features a 5.0-litre V8 engine and lightweight chassis engineered by Gordon Murray Design. Testing of its first prototype is already underway.
Nurturing Future Technology
A sustainable future for the automotive sector relies on expertise in emerging technology, and South Wales is set to become a hub for forward-looking research and development, backed by government funding.
Announced in March 2021, the 5G Wales Unlocked project will fund high-speed data connections across Blaenau Gwent and Monmouthshire, in turn laying foundations for ResilientWorks; a £7m campus for testing connected and autonomous vehicles and enerhy infrastructure. The site is on the doorstep of the Welsh Government’s £100m Automotive Technology Park in Rhydy-y-Blew, and will include a track and street complex for testing increasingly automated vehicle technology and connected transport services.
Nearby, Abergavenny-based Riversimple is making strides towards production of the Rasa - a two-seat, lightweight electric car which produces its own electricity using a hydrogen fuel cell. The company is building a small fleet to begin testing with members of the public, but recently signed a memorandum of understanding with Siemens to begin series production in 2023, followed by a light van version, at a rate of 5,000 units per year.
Greener hydrogen production is enjoying a renewed focus as part of Prime Minister Boris Johnson’s Ten Point Plan for a Green Industrial Revolution. This will use electricity from renewables to power large-scale electrolysers separating hydrogen from water, essentially turning it into an energy storage medium. Riversimple sees opportunities to form clusters of users, including trucks and buses, and create a business case for hydrogen suppliers to open fuelling stations nearby. Limited infrastructure – there are only nine hydrogen stations nationwide – is a significant stumbling block for fuel cell vehicles.
In Cardiff, vintage car restoration specialist Hemmels is also looking to the future. The company presented a battery-electric conversion for the Mercedes-Benz ‘Pagoda’ SL, offering a 200-mile range with the ability to recharge to 70% in less than an hour. A run of 12 will be built for customers in the UK and USA during 2021, each the result of a 4,000-hour restoration and finished in a bespoke colour and trim combination. It’s expertise which is increasingly valued internationally.
A Transition Period for Travel
In February, the Welsh Government set out its plans to achieve net zero carbon emissions by 2050 at the latest, in line with the UK-wide target. Transport accounts for 17% of the country’s CO2 emissions and is firmly in the spotlight for improvement – including rapidly accelerating adoption of electric and hybrid vehicles.
The 2020s are a transition period. All new car and van sales will be at least full hybrids by 2030, based on an as-yet-determined ‘significant’ electric range. Five years later, only fully electric (including hydrogen fuel cell) models will be available new. However, the Welsh charging infrastructure has lagged behind England, Scotland and Northern Ireland – particularly in terms of the fastest ‘rapid’ charging points, which typically restore 80% of a vehicle’s range in half an hour.
These are gaps that the government is looking to fill, and quickly. Funding totalling £30m is set aside for the first half of the decade, supporting the start of a widespread network of charging points. This will comprise between 30,000 and 55,000 ‘fast’ units (which take several hours to charge a car) nationwide, and between 2,000 and 3,500 rapid chargers close to major routes. Both will be supported by an app-based payment system, designed to overcome the need for multiple memberships when travelling long distances.
Decarbonisation is influencing some of the country’s biggest fleets. In March, NHS Wales said it would mandate at least plug-in hybrid capability for all rapid response vehicles from April 2022. The Welsh Ambulance Service NHS Trust will continue to build on its charging infrastructure across its sites, and work with vehicle manufacturers to encourage further R&D. By 2028, the trust is hoping to operate its first electric, or low carbon-fuelled, ambulances.
In the meantime, the Welsh Government is encouraging a change of habits. A stretch of the M4 through Newport was designated as a 50mph zone in March, designed to aid traffic flow and improve air quality for the surrounding residential areas, while Cardiff is continuing to assess congestion charging to deter commuters arriving by car. Community workspace pilots are also being rolled out across the country, with an eventual target of enabling 30% of the workforce to move away from traditional offices and alleviate congestion. Following a disruptive year, the bigger changes are still to come.
In February, the Welsh Government set out its plans to achieve net zero carbon emissions by 2050 at the latest, in line with the UK-wide target. Transport accounts for 17% of the country’s CO2 emissions and is firmly in the spotlight for improvement – including rapidly accelerating adoption of electric and hybrid vehicles.
The 2020s are a transition period. All new car and van sales will be at least full hybrids by 2030, based on an as-yet-determined ‘significant’ electric range. Five years later, only fully electric (including hydrogen fuel cell) models will be available new. However, the Welsh charging infrastructure has lagged behind England, Scotland and Northern Ireland – particularly in terms of the fastest ‘rapid’ charging points, which typically restore 80% of a vehicle’s range in half an hour.
These are gaps that the government is looking to fill, and quickly. Funding totalling £30m is set aside for the first half of the decade, supporting the start of a widespread network of charging points. This will comprise between 30,000 and 55,000 ‘fast’ units (which take several hours to charge a car) nationwide, and between 2,000 and 3,500 rapid chargers close to major routes. Both will be supported by an app-based payment system, designed to overcome the need for multiple memberships when travelling long distances.
Decarbonisation is influencing some of the country’s biggest fleets. In March, NHS Wales said it would mandate at least plug-in hybrid capability for all rapid response vehicles from April 2022. The Welsh Ambulance Service NHS Trust will continue to build on its charging infrastructure across its sites, and work with vehicle manufacturers to encourage further R&D. By 2028, the trust is hoping to operate its first electric, or low carbon-fuelled, ambulances.
In the meantime, the Welsh Government is encouraging a change of habits. A stretch of the M4 through Newport was designated as a 50mph zone in March, designed to aid traffic flow and improve air quality for the surrounding residential areas, while Cardiff is continuing to assess congestion charging to deter commuters arriving by car. Community workspace pilots are also being rolled out across the country, with an eventual target of enabling 30% of the workforce to move away from traditional offices and alleviate congestion. Following a disruptive year, the bigger changes are still to come.