UK Car Industry: 11.7% Production Growth in First Half of 2023

Recent data indicates that car production in the UK experienced a noteworthy upswing of 11.7% during the initial half of 2023.

The SMMT says car production reached 450,168 units in the first half of the year until June's end, marking a significant 16.2% increase, and the fifth consecutive month of growth as the automotive industry recovers from the impact of recent events.

These half-year results stand as the most promising since 2021, with signs of improvement in global supply chain challenges, particularly the semiconductor shortage.

Recent developments in the UK's automotive sector continue to boost the industry, with positive news of JLR's plans to establish an advanced gigafactory in Somerset for EV production, alongside the latest encouraging update.

Analysing the numbers, there has been a noteworthy increase of 47,037 units manufactured since January, surpassing the output of the previous six months.

The significant surge in exports, accounting for approximately 80% of the total production, is the primary driver behind this growth, with a remarkable 13.6% rise reaching 359,940 exported cars.

The UK's most significant share of car shipments (59.5 per cent) goes to the EU. The number has seen an increase of 11.2 per cent, reaching 214,017.

The US, China, Japan, Australia, Turkey, South Korea, Canada, the UAE, and Mexico are other major export nations for the UK. All these saw growth in exports, except the US (down 0.1 per cent) and China (down 6.4 per cent).

Meanwhile, the UK's internal volumes experienced a rise of 4.5 per cent, totaling 90,228 units.

Nevertheless, the year-to-date performance shows a significant decline compared to pre-pandemic levels, as production remains 32.5% lower than that of 2019.

Mike Hawes, the CEO of SMMT, commented on the positive outlook, highlighting the growth in UK car manufacturing, especially in electrified models, along with notable investment announcements making headlines.

These achievements demonstrate the sector's resilience and its inherent advantages, including a skilled and productive workforce, world-class R&D capabilities, and efficient, productive plants.

However, to maintain this progress and continue attracting investments, we need a competitive strategy that enhances the UK's distinctive automotive sector, with a particular emphasis on green motoring. Notably, production figures for hybrid electric, PHEVs, and BEVs soared by an impressive 71.6% from January to June, reaching an all-time high of 170,231 units.

Approximately 37.8% of the total car production this year corresponds to this figure.

The SMMT issued a cautionary statement about any postponement of the 2030 ban on new combustion-powered vehicles.

Expert’s Opinion

Paul Barker, managing editor at Carwow UK

The continuous surge in UK car production over the past five months as we approach the end of H1 is highly motivating, and the overall figures indicate positive developments.

The recent news of Tata Group's investment in constructing a gigafactory for batteries in the UK adds to the satisfaction, with hybrid, plug-in hybrid, and battery electric vehicle volumes experiencing a remarkable 71.6% increase from January to June.

As cities nationwide implement fresh and extended low-emission zones, and the Government stands resolute on the 2030 target to eliminate new combustion-run vehicles, embracing these changes becomes crucial.

Ensuring an extensive expansion of public electric vehicle charge points becomes even more critical, considering the rapid surge in electric car production.

Mark Tisshaw, editor, Autocar

The data from the SMMT Society of Motor Manufacturers and Traders reveal a consistent upward trend in both manufacturing and exports. Notably, in June, there was a substantial increase in the production of Hybrid and Electric vehicles, indicating a clear commitment from the industry to meet the 2030 deadline for the cessation of ICE (Internal Combustion Engine) vehicle production in the UK.

Despite the advancements made, certain obstacles require attention, particularly concerning charging infrastructure and manufacturing capacity. It is imperative for authorities to actively back the industry and consumers in their transition to EVs, as they have mandated. The recent approval of Tata's investment in a UK Gigafactory is a positive development, but the country must foster additional endeavors like this to secure its position as a competitive battery manufacturing hub in the years to come.

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Source and Image: CarDealerMagazine