UK car production continues gradual improvement

Manufacturers produced 4,605 additional units in July, but output remains -46.4 per cent below pre-pandemic levels. Production for the UK market rose 40.7 per cent to 11,583 units, with exports also up by 2.8 per cent.

Exports account for eight out of 10 cars made, though shipments to the EU and US fell were down -7.3 per cent and -22.8 per cent respectively, while orders from China and Japan rose 54 per cent and 40.1 per cent.

In total, 29.9 per cent of all cars made in July were either battery electric (BEV), plug-in hybrid (PHEV) or hybrid electric (HEV) amounting to 17,356 units, with BEV volumes up 65.9 per cent.

Despite three months of growth, year-to-date UK car production remains -16.5 per cent below the same period in 2021, at 461,174 units. According to SMMT, the decline is attributable to supply chain shortages, structural changes and weak exports, which fell -21.3 per cent to 363,223 units, with a 7.6 per cent rise in production for the UK unable to offset these losses. Over three quarters (78.8 per cent) of all cars made in Britain since January have been shipped overseas, with some 59.3 per cent into the EU.