According to the latest figures published by the Society of Motor Manufacturers and Traders (SMMT), UK car production increased by 6.0% in the first quarter of 2023, to 219,887 units.
As the global shortage of semiconductors and other components begins to ease, factories produced 12,540 units more than Q1 last year, driven by exports which increased 6.6% and represented almost eight in 10 cars made in Britain.
In March, volumes were up 6.1% to 81,605 as exports drove growth, up 10.4% to 61,546 units, offsetting a 5.1% decline in car production for the UK as 20,059 cars were made for the domestic market.
The largest share of exported cars, at 63.6%, went to the EU, (39,172 units), as shipments rose 4.9%, while those to the next biggest markets, the US and China declined by 4.1% and 8.3% respectively.
Exports to Turkey, Japan, Australia and South Korea, meanwhile, all rose, though combined they represented just 11.9% of all cars heading abroad in March. Canada, Mexico and Israel rounded off the top 10 markets for UK car exports last month, with only those to Canada down, by 111 units.
Electrification continues to be a growing part of the UK auto output as British car makers manufacture the latest hybrid, plug-in hybrid and battery electric vehicles. Combined volumes of these models surged 75.0% in March to 32,546 units, with four in 10 cars featuring ultra-low or zero emission powertrain technology. This trend is set to continue as new products come on stream, with more than 20 models of electric cars, vans, buses, trucks and taxis expected to be in production in the UK by 2025.
“A second consecutive month of growth for UK car production gives cause for optimism, though volumes are still well below pre-pandemic levels,” said SMMT Chief Executive Mike Hawes. “If British car manufacturing is to get back towards those levels, with all the economic benefits that brings, we need to match the best in global competitiveness. That means driving down the high cost of UK energy, reforming business rates and vigorously promoting Britain globally to secure the investments essential to a zero carbon automotive future.”
According to UK Head of Automotive for KPMG, Richard Peberdy, UK car output is still lower than pre-pandemic levels and there are unanswered questions about how the UK will produce electric vehicles at a larger scale and remain competitive with countries who have already developed policies to encourage inward investment in next generation manufacturing facilities.
