In July, UK car production increased by 31.6%, marking the sixth consecutive month of growth. However, not only did the production of combustion engine vehicles grow, but also that of zero and low-emission cars.
“Six months of growth show that British car production is recovering, and with electrified models generating increasingly larger volumes, the future is more positive,” said Mike Hawes, CEO of the Society of Motor Manufacturers and Traders (SMMT).
“Undoubtedly, recent investment announcements have strengthened the sector, but global competition remains tough,” he added.
In this regard, to attract more investments and produce the next generation of zero-emission models and technologies, Hawes acknowledges that “a coherent strategy is needed to leverage strengths and support all aspects of advanced automotive manufacturing.”
It’s worth mentioning that production of the latest high-tech hybrid electric vehicles (HEV), plug-in hybrid electric vehicles (PHEV), and battery electric vehicles (BEV) continued at a good pace, with combined volumes increasing by 73.9% to 30,180 units and accounting for nearly two out of every five (39.5%) cars manufactured in July.
Since January, UK car manufacturers have produced over 200,000 of these vehicles, nearly double the amount produced in the same period last year, and a total of 526,619 cars overall, representing a 14.2% year-on-year increase.
Taking into account the various types of vehicles, factories produced 526,619 units so far this year, with a volume increase of 14.2% compared to the first seven months of 2022.
However, UK car manufacturers continue to recover from recent challenges, notably the global chip shortage, in order to deliver the latest models to domestic and international buyers.
Despite this growth, production remained -29.4% lower than in July 2019 before the pandemic.
Manufacturing production in the UK increased by 13.7% to 13,187 units in the month, while exports grew by over a third (36.1%) to 63,264 units, accounting for by far the majority of all production in July.
More than eight out of ten (82.8%) cars manufactured were shipped abroad, with the main destinations being the EU, the US, China, Japan, and Australia.
Together, they represented nearly 85% of all UK car exports last month.
These figures come after the release of the latest independent production outlook, which suggests that total car production in the UK will reach around 860,000 units this year, a 10.9% increase from 2022, as the sector rebounds from three challenging years of Covid, with the possibility of returning to the million mark by 2028.
The Society of Motor Manufacturers and Traders (SMMT) is one of the largest and most influential trade associations in the UK.
Its resources, reputation and unrivalled automotive data place it at the heart of the UK automotive industry.
Is the voice of the UK motor industry, supporting and promoting its members’ interests, at home and abroad, to government, stakeholders and the media.
SMMT represents more than 800 automotive companies, providing them with a forum to voice their views on issues affecting the sector, helping to guide strategies and build positive relationships with government and regulatory authorities.