UK car production sees six months of growth

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【Summary】UK car production rose 31.6% in July, marking the sixth consecutive month of growth, according to the Society of Motor Manufacturers and Traders (SMMT). Despite this, output remains lower than pre-pandemic levels. Manufacturing output increased 13.7% and exports rose 36.1%. Production of hybrid and electric vehicles also saw significant growth. The SMMT called for a coherent strategy to support advanced automotive manufacturing.

FutureCar Staff Aug 31, 2023 9:18 AM PT

UK car production sees six months of growth

According to the Society of Motor Manufacturers and Traders (SMMT), UK car production experienced a significant surge in July, with a 31.6% rise marking the sixth consecutive month of growth. This positive trend comes as UK car makers continue to recover from challenges such as global chip shortages, enabling them to deliver the latest models to both domestic and international buyers. However, despite this growth, output in July remained 29.4% lower than pre-pandemic levels in July 2019.

In terms of manufacturing output, the UK witnessed a 13.7% increase, resulting in 13,187 units produced during the month. Exports also saw a substantial rise, with a 36.1% increase to 63,264 units. These exports accounted for the majority of production in July, with 82.8% of cars made being shipped overseas. Key markets for UK car exports included the EU, US, China, Japan, and Australia, which collectively represented almost 85% of all exports last month.

The production of hybrid electric (HEV), plug-in hybrid (PHEV), and battery electric vehicles (BEVs) continued to grow steadily, with a combined volume increase of 73.9% to 30,180 units. These vehicles accounted for nearly 40% of all cars made in July. Since January, UK car makers 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, reflecting a 14.2% year-on-year increase.

Mike Hawes, the Chief Executive of SMMT, expressed optimism about the recovery of British car production, particularly with the increasing popularity of electrified models. However, he emphasized the importance of a coherent strategy to attract further investment and support the development of zero-emission models and technologies. While recent investment announcements have strengthened the sector, global competition remains fierce.

The latest independent production outlook predicts that total UK car production will reach approximately 860,000 units this year, representing a 10.9% uplift from 2022. This recovery from three challenging years due to the Covid-19 pandemic raises the possibility of reaching the one million mark in production by 2028.

SOURCE: SMMT