UK car production grows for the sixth consecutive month

UK car production marked its sixth consecutive month of growth in July, according to new data released by the Society of Motor Manufacturers and Traders (SMMT).

The latest figures indicated a 31.6% surge in car production, with 76,451 units rolling off assembly lines in July.

That uptick reflected a recovery from recent challenges such as global chip shortages that had affected the sector.

Despite the ongoing progress, production output was still 29.4% lower compared to pre-pandemic levels in July 2019.

The data reveals a significant increase in both domestic and overseas demand, with manufacturing output for the UK specifically rising 13.7%, totaling 13,187 units for the month.

Exports saw an even greater jump, with a 36.1% increase amounting to 63,264 units.

The overseas market accounted for a substantial 82.8% of total production in July, with top export destinations including the European Union, the United States, China, Japan, and Australia.

Together, those regions made up nearly 85% of all UK car exports for the month.

The production of high-tech hybrid electric vehicles (HEV), plug-in hybrid vehicles (PHEV), and battery electric vehicles (BEVs) meanwhile also saw a robust increase.

Combined volumes of those eco-friendly vehicles escalated by 73.9%, reaching 30,180 units and constituting almost two out of every five cars made in July, at 39.5%.

Since the beginning of the year, UK manufacturers have produced more than 200,000 of such vehicles, nearly double the production volume for the same period in 2022.

Year-to-date figures indicated that factories had turned out a total of 526,619 cars, marking a 14.2% increase over the first seven months of 2022.

An independent production outlook published recently suggested that the total UK car production could reach approximately 860,000 units this year, a 10.9% uplift from 2022.

“Six months of growth shows that British car production is recovering and, with electrified models increasingly driving volumes, the future is more positive,” said SMMT chief executive Mike Hawes.

“Recent investment announcements have undoubtedly bolstered the sector but global competition remains tough.

“If we are to attract further investment and produce the next generation of zero emission models and technologies, we need a coherent strategy that builds on our strengths and supports all aspects of advanced automotive manufacturing.”

Reporting by Josh White for Sharecast.com.