UK car production sees six months of growth

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【Summary】UK car production increased by 31.6% in July, marking the sixth consecutive month of growth. Despite this, production remains lower than pre-pandemic levels. Manufacturing output rose by 13.7% and exports increased by 36.1%, with the majority of cars being shipped overseas. The production of electric vehicles also saw significant growth.

FutureCar Staff Aug 31, 2023 6:16 AM PT

UK car production sees six months of growth

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). The latest figures revealed that 76,451 units were produced during this period, as car manufacturers in the UK continued to recover from challenges such as global chip shortages. Despite this positive trend, the output remained 29.4% lower than the pre-pandemic levels of July 2019.

In July, manufacturing output in the UK rose by 13.7% to reach 13,187 units. Additionally, exports saw a substantial increase of 36.1%, totaling 63,264 units. These exports accounted for the majority of car production in July, with 82.8% of vehicles being shipped overseas. The EU, US, China, Japan, and Australia were the top destination markets, collectively representing almost 85% of all UK car exports during the month.

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 electrified vehicles accounted for 39.5% of all cars produced in July. 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, reflecting a year-on-year increase of 14.2%.

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 attract further investment and support advanced automotive manufacturing. While recent investment announcements have strengthened the sector, global competition remains challenging.

The latest independent production outlook predicts that UK car production will reach approximately 860,000 units this year, representing a 10.9% increase compared to 2022. This positive trajectory suggests the possibility of reaching the million mark in 2028 as the sector continues to recover from the impact of the Covid-19 pandemic.

SOURCE: SMMT