8:30 am, June 30, 2023
Car production in the UK rose for the fourth consecutive month in May – up by more than a quarter, according to figures published today by the SMMT.
A total of 79,046 units left production lines, which was 16,762 more than in the same month last year and a 26.9 per cent rise.
However, the total was still down by 31.9 per cent on the pre-pandemic May 2019 figure of 116,035.
Domestic and overseas orders enjoyed double-digit growth, with volumes for the UK surging by 45.4 per cent to 16,188 units and exports rising by 22.9 per cent to 62,858 units.
Exports accounted for most of the production output at 79.5 per cent, with the EU still the biggest global market, taking 35,215 units – up 19.0 per cent and representing 56.0 per cent of all overseas shipments in the month.
The SMMT said the trend reinforced the need for continued tariff-free trade between the UK and EU, especially in electrified vehicles.
EVs are due to be hit by tougher rules of origin from January 1, 2024 unless the EU and UK can agree to their postponement.
Combined hybrid electric, plug-in hybrid and battery electric vehicle volumes were up 95.4 per cent in May to 27,636 units and comprised 35.0 per cent of all cars made in the month.
The SMMT said tariffs would make the vehicles more expensive just when the industry needs to ramp up sales – with a zero-emission vehicle mandate expected in 2024.
Mike Hawes, SMMT chief executive, said: ‘Another month of growth for UK car production is good news and a sign that, despite challenging economic conditions, the industry’s foundations are strong.
‘But with weak GDP growth, high inflation and rising interest rates, it’s crucial that UK car factories stay globally competitive.
‘All political parties must recognise the strategic importance of this sector and back our call for an industrial strategy that supports local production, assures export market access and attracts further investment to safeguard our future.’
The news follows the launch earlier this week of the SMMT’s Manifesto 2030: Automotive Growth For A Zero-Emission Future, which sought cross-party support for five pledges to drive industrial transformation, mobility for all, upskilling, global trade and clean, affordable energy.
It said doing so would help create the conditions for a tenfold rise in annual EV production to more than 750,000 units per year by 2030, equating to a cumulative £106bn-worth of products at the factory gate.
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