UK car production sees growth for six months

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【Summary】UK car production rose by 31.6% in July, marking the sixth consecutive month of growth. Manufacturers are recovering from chip shortages, with exports accounting for 82.8% of all production. Hybrid and electric vehicles are driving volumes, with combined production up 73.9% since January. The Society of Motor Manufacturers and Traders (SMMT) calls for a coherent strategy to attract investment and support advanced automotive manufacturing.

FutureCar Staff Sep 03, 2023 9:28 AM PT

UK car production sees growth for six months

UK car production experienced a significant surge in July, with a growth rate of 31.6%, marking the sixth consecutive month of expansion. The Society of Motor Manufacturers and Traders (SMMT) released the latest figures today, revealing that a total of 76,451 units were produced. This growth is a positive sign for UK car makers who have been recovering from various challenges, including global chip shortages. Despite the increase, the output in July 2021 remained 29.4% lower than the pre-pandemic levels of July 2019.

In terms of manufacturing output, the UK witnessed a rise of 13.7% to 13,187 units during the same month. Furthermore, exports saw a notable increase of 36.1%, reaching 63,264 units. The majority of production in July was destined for international markets, with over 82.8% of cars being shipped overseas. The European Union, United States, China, Japan, and Australia were the top destination markets, accounting for almost 85% of all UK car exports last month.

The production of hybrid electric (HEV), plug-in hybrid (PHEV), and battery electric vehicles (BEVs) continued to grow steadily. These advanced vehicles saw a combined volume increase of 73.9%, totaling 30,180 units. In fact, nearly two out of every five cars made in July were HEVs, PHEVs, or BEVs, representing 39.5% of the total production. Since January, UK car manufacturers have produced over 200,000 of these vehicles, almost double the amount from 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 recovery of British car production. He emphasized the growing importance of electrified models in driving volumes and highlighted recent investment announcements that have strengthened the sector. However, he also acknowledged the tough global competition and stressed the need for a coherent strategy to attract further investment and support advanced automotive manufacturing.

The latest independent production outlook suggests that total UK car production is projected to reach approximately 860,000 units this year, representing a 10.9% increase compared to 2022. This recovery is expected to continue, with the possibility of reaching the one million mark in 2028.

SOURCE: SMMT