British car production rebounds thanks to record electric vehicle …
Thursday 27 July 2023 6:00 am
UK car production jumped 11.7 per cent in the first six months of the year, industry figures show, marking a major rebound from the pandemic-induced lows of 2022.
According to the Society of Motor Manufacturers and Traders (SMMT), 450,168 units were made in the six months from January, with June the fifth consecutive month of growth and up 16.2 per cent year-on-year.
Electric vehicle (EV) production surged 71.6 per cent to a new first half record, with 170,231 units rolling off factory lines.
The performance represented the best first half since 2021, with manufacturers finally able to shake off a major downturn caused by a global semiconductor shortage, which had massively constrained car production since the pandemic.
Mike Hawes, SMMT chief executive, said: “UK car manufacturing is growing again, with production – especially of electrified models – increasing and major investment announcements making headlines.”
“This is testament to the resilience of the sector and its undoubted strengths – a skilled and productive workforce, world-class R&D, and efficient, productive plants.”
He added: “But we must build on this momentum, sustain growth and attract further investments with a strategy that focuses on competitiveness and which strengthens the UK’s unique automotive offering.”
The surge in electrified production came shortly after news last week that JLR-owner Tata planned to build a major £4bn gigafactory in the UK[1].
The battery plant looks set to provide a major boost for Britain’s automotive sector, which has repeatedly warned that the UK is at risk off falling behind international competitors in the race to electrify carmakers’ fleets.
The SMMT said today that the capacity of British automakers to turn out greener car models had significantly improved this year, with EVs now representing more than a third of all manufactured cars.
Overall, the latest production outlook expects UK factories to turn around 860,000 cars in 2023, up 10.9 per cent on 2022.
Britain’s automotive sector currently supports around 800,000 jobs in total, including manufacturing, retail and aftermarket and adds £16bn to the UK economy.
New car market ‘growing back and growing green’ with EV surge – but rate hikes peak concern[2]