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UK car production sees continuous growth over six months

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【Summary】UK car production experienced significant growth in July, rising 31.6% for the sixth consecutive month. Despite this, output remains lower than pre-pandemic levels. Exports accounted for the majority of production, with the EU, US, China, Japan, and Australia being the top destinations. Electric vehicles also saw a surge in production, with combined volumes increasing by 73.9%.

FutureCar Staff    Sep 02, 2023 9:24 AM PT
UK car production sees continuous growth over six months

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 positive trend reflects the ongoing recovery of UK car manufacturers from recent challenges such as global chip shortages. In July, a total of 76,451 units were produced, allowing car makers to deliver the latest models to both domestic and international buyers. However, it is important to note that despite this growth, output in July 2021 remained 29.4% lower than the pre-pandemic levels of July 2019.

Manufacturing output in the UK also saw a notable increase, rising by 13.7% to reach 13,187 units during the same month. Furthermore, exports experienced a significant boost, with a 36.1% increase to reach 63,264 units. This demonstrates that the majority of production in July was destined for overseas markets. The European Union, United States, China, Japan, and Australia were the top destinations for UK car exports, accounting for almost 85% of all exports in the last month. In fact, more than eight out of ten cars produced in the UK were shipped abroad.

The production of advanced vehicles, such as hybrid electric (HEV), plug-in hybrid (PHEV), and battery electric vehicles (BEVs), continued to grow rapidly. Combined volumes of these vehicles increased by 73.9% to reach 30,180 units in July, representing almost 40% of all cars produced during the month. Since January, UK car manufacturers have produced over 200,000 of these vehicles, nearly double the amount from the same period last year. Overall, a total of 526,619 cars were produced in the UK, marking a 14.2% increase compared to the previous year.

Mike Hawes, the Chief Executive of SMMT, expressed optimism about the recovery of British car production. He highlighted the increasing role of electrified models in driving volumes and emphasized the need for a coherent strategy to support the production of zero-emission models and advanced automotive manufacturing. While recent investments have provided a boost to the sector, global competition remains challenging. Attracting further investment and producing the next generation of zero-emission vehicles will require a strategic approach that builds on the strengths of the UK automotive industry.

These figures coincide with the release of the latest independent production outlook, which predicts that total UK car production will reach approximately 860,000 units this year, representing a 10.9% increase compared to 2022. This positive outlook indicates that the sector is on track to recover from the difficulties caused by the Covid-19 pandemic. There is even the possibility of reaching the million mark in terms of production by 2028.

SOURCE: SMMT

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