UK car production up 13.1 percent

Growth in February shows an industry on the road to recovery, says SMMT chief executive

UK car production up 13.1 percent
Photo: Nissan

UK car production rose 13.1 percent in February, up to 69,707 units, according to figures published by the Society of Motor Manufacturers and Traders (SMMT).

Factories built an additional 8050 cars, with volumes buoyed by an easing of supply chain shortages, which have strangled the car industry since the early months of 2021.

Production for both home and overseas markets rose by double digits, up 20.3 percent and 11.5 percent respectively, with exports driving the overall uplift.

A total of 56,634 cars were produced to fulfil global orders, up from 50,786 a year before and accounting for 81.2 percent of output, with the majority of these exports (59.6 percent) heading to the European Union.

Shipments to the EU rose 6.5 percent, helping to offset declines to the US (-19.9 percent) and China (-21.6 percent). Exports to Turkey, Japan, Australia and South Korea, meanwhile, also rose, collectively by 85 percent, and together represented a total of 6,498 cars, or 11.5 percent of exports.

The UK’s transition to hybrid, plug-in hybrid and battery electric vehicles continued, with combined volumes rising 72.2 percent from 15,905 to a total of 27,392 units and accounting for two in five (39.3 percent) cars produced in the month.

While automotive businesses are broadly optimistic about the next 12 months, more than eight in 10 report that input and employment costs have risen in the past three months, so action to alleviate cripplingly high and uncompetitive energy costs ranks as their number one concern.

Support on business rates, easing supply shortages and access to trade are also all viewed as beneficial for growth.

Mike Hawes, SMMT chief executive, said, “February’s growth in UK car production signposts an industry on the road to recovery.

”The fundamentals of the sector are strong; a highly skilled workforce, engineering excellence, a sector that is embracing new electrified vehicle manufacturing and wide ranging capabilities in the EV supply chain.

”To take advantage of global opportunities, however, we must scale up at pace and make the UK the most attractive destination for automotive investment by addressing trading and fiscal costs and delivering low carbon, affordable energy.”

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