UK car production sees steady growth in first half of the year

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 latest figures released by the Society of Motor Manufacturers and Traders (SMMT). This positive trend demonstrates the ongoing recovery of UK car makers from recent challenges, such as global chip shortages. As a result, 76,451 units were manufactured and delivered to buyers both domestically and internationally. However, it is important to note that despite this growth, output still remains 29.4% lower compared to July 2019, before the pandemic.

Within the manufacturing sector, output for the UK rose by 13.7% to 13,187 units in July. Furthermore, exports saw a significant increase of 36.1%, with 63,264 units being shipped overseas. In fact, more than eight-in-ten cars made in the UK were exported, with the European Union, United States, China, Japan, and Australia being the top destination markets. Collectively, these countries accounted for nearly 85% of all UK car exports last month.

One notable aspect of the production surge is the increased manufacturing of hybrid electric (HEV), plug-in hybrid (PHEV), and battery electric vehicles (BEVs). The combined volume of these vehicles rose by 73.9% to 30,180 units in July, representing almost 40% of all cars produced. Since January, UK car makers have produced over 200,000 of these vehicles, which is nearly double the amount produced during the same period last year. Overall, a total of 526,619 cars were manufactured, indicating a 14.2% year-on-year increase.

Mike Hawes, Chief Executive of SMMT, expressed optimism about the future of British car production. He stated that six months of consecutive growth is a positive sign, especially with the increasing popularity of electrified models. However, he also emphasized the need for a coherent strategy to attract further investment and support the development of zero-emission models and advanced automotive manufacturing as global competition remains fierce.

The latest independent production outlook predicts that total UK car production will reach approximately 860,000 units this year, reflecting a 10.9% increase compared to 2022. This recovery is seen as a significant step forward for the sector, which aims to potentially reach the million mark in production by 2028.

SOURCE: SMMT

FutureCar Staff