UK car production sees continuous growth for six months

author: FutureCar Staff    

UK car production experienced a significant surge in July, with a 31.6% increase, marking the sixth consecutive month of growth, according to the Society of Motor Manufacturers and Traders (SMMT). This growth is a positive sign for UK car makers as they continue to recover from recent challenges, such as global chip shortages. In July, a total of 76,451 units were produced, allowing car manufacturers to deliver the latest models to both domestic and international buyers. However, it is important to note that despite this growth, output still remains 29.4% lower than pre-pandemic levels in July 2019.

In terms of manufacturing output, the UK saw a 13.7% increase, resulting in 13,187 units produced during the month. Export numbers also saw a significant boost, rising by 36.1% to reach 63,264 units. This demonstrates that a majority (82.8%) of the cars produced were shipped overseas. The European Union, United States, China, Japan, and Australia were the top destination markets for these exports, accounting for almost 85% of all UK car exports in July.

The production of hybrid electric (HEV), plug-in hybrid (PHEV), and battery electric vehicles (BEVs) continued to grow rapidly, with a combined volume increase of 73.9% to reach 30,180 units. These types of vehicles accounted for almost two-fifths (39.5%) of all cars produced in July. UK car manufacturers have been particularly active in this area, producing over 200,000 of these vehicles since January, which is nearly double the amount produced during the same period last year. Overall, a total of 526,619 cars were produced, marking a 14.2% year-on-year increase.

Mike Hawes, the Chief Executive of SMMT, expressed optimism about the future of British car production. He stated that six months of consistent growth indicate a recovering industry, with electrified models playing a significant role in driving volumes. While recent investment announcements have strengthened the sector, global competition remains fierce. Hawes emphasized the need for a coherent strategy that capitalizes on the industry's strengths and supports all aspects of advanced automotive manufacturing to attract further investment and develop zero-emission models and technologies.

The latest independent production outlook predicts that total UK car production will reach approximately 860,000 units this year, representing a 10.9% increase compared to 2022. This positive trajectory suggests that the sector is recovering from the challenges posed by the Covid-19 pandemic, with the potential to reach the one million mark in 2028.

SOURCE: SMMT

FutureCar Staff