UK car production increased by nearly 40% in September

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【Summary】UK car manufacturing saw a significant increase of 39.8% in September compared to the same month last year, with 88,230 vehicles produced. This growth was the strongest so far this year and contributed to a total of 659,901 cars produced in the UK year-to-date. Both domestic and export markets experienced growth, with notable increases in major markets such as the US, China, and Turkey. The EU remains the UK's leading trading partner. The volume of British cars exported globally has risen by 16.

FutureCar Staff Oct 26, 2023 9:29 AM PT

UK car production increased by nearly 40% in September

In September 2022, UK car manufacturing experienced its best September since 2020, with a 39.8% increase in production. According to the Society of Motor Manufacturers and Traders (SMMT), a total of 88,230 vehicles were manufactured in British factories, which is 25,105 more than the same month last year.

This September also marked the strongest month of growth so far this year. From January to September, a total of 659,901 cars were produced in the UK, showing a 14.9% increase compared to the same period in 2021.

Both domestic and export markets saw an increase in output. Production for the UK market rose by 65.9% to 23,503 units, while overseas shipments increased by 32.2% to 64,727 units.

Significant growth was observed in major markets, including a 19.8% increase in car exports to the US, a 28.2% increase to China, and an impressive 212% increase to Turkey.

Despite these gains, the European Union (EU) remains the UK's leading trading partner by a significant margin. In September, 37,563 UK-built cars were shipped to the EU, representing a 46.1% increase compared to the same month last year and accounting for 58.0% of the sector's overseas trade.

Since January, the volume of British cars exported to global markets has risen by 16.3% to 524,973 units. Notably, electrified vehicles now make up more than a third (37.5%) of outbound shipments, up from 26.4% a year ago.

The Society of Motor Manufacturers and Traders (SMMT) emphasizes the importance of maintaining tariff-free trade in electric vehicles (EVs) with mainland Europe, as this trade has more than doubled in value over the past three years. However, new rules of origin for batteries will come into effect in January 2024, potentially leading to price hikes in EVs.

The SMMT warns that failure to comply with these new requirements could result in a 10% tariff, which would increase the average cost of UK-built battery electric vehicles (BEVs) by £3,600 in Europe. Similarly, EU-made BEVs sold in the UK would see an average price hike of £3,400. The SMMT suggests a three-year delay in implementing these new requirements to maintain competitiveness and support manufacturers on both sides of the Channel.

Mike Hawes, Chief Executive of the SMMT, emphasizes the importance of the automotive sector for the UK, as it provides thousands of jobs and attracts billions of pounds in investment. He believes that with the right investment and trading conditions, Britain can become a global hub for EV manufacturing. Hawes urges the UK and EU to agree on delaying the implementation of tougher rules of origin requirements to provide breathing space for the automotive sectors on both sides of the Channel to scale up gigafactories and green supply chains.

The SMMT's latest report, "Open Roads - Driving Britain's global automotive trade," outlines recommendations for long-term automotive growth, including progressive trade agreements, an attractive investment environment, and a vibrant domestic supply chain.