In February, UK car production increased by 13.1%, up to 69,707 units, according to the latest figures released by the Society of Motor Manufacturers and Traders. SMMT Factories made additional 8,050 cars, with volumes buoyed by the easing of supply chain shortages, a factor that has had a major impact on the global industry since the early months of 2021, according to the latest figures released by the Society of Motor Manufacturers and Traders.
Production for both home and overseas markets increased by double digits, up 20.3% and 11.5% respectively, with exports driving the overall uplift. 56,634 cars were produced to fulfill global orders, an increase from 50,786 a year ago and accounting for 81.2% of output, with the majority of these exports going into the UK's largest trading partner, the EU.
Shipments to the EU increased 6.5%, helping offset declines to the US and China, providing further evidence of the need for continued free trade across the Channel. In total, the exports to Turkey, Japan, Australia, and South Korea went up by 85.0%, and together represented a total of 6,498 cars, or 11.5% of exports.
The UK's automotive industry transition to hybrid, plug-in hybrid and battery electric vehicles continued, with combined volumes of 72.2% from 15,905 to a total of 27,392 units and accounting for two in five cars produced in the month. Nine in 10 firms want to deliver low carbon and cost-effective energy supply in order to support the transition to zero emission technologies, according to a new SMMT member survey.
More than eight in 10 automotive businesses report that input and employment costs have gone up in the past three months, so action to deal with cripplingly high and uncompetitive energy costs is their number one concern. Support on business rates, easing supply shortages and access to trade are viewed as beneficial for growth.
Mike Hawes, SMMT Chief Executive, said February s growth in UK car production signposts an industry on the road to recovery. The sector has strong foundations, including a highly skilled workforce, engineering excellence, a sector that embraces new electrified vehicle manufacturing and wide ranging capabilities in the EV supply chain. To take advantage of global opportunities, we need to scale up at a higher pace to make the UK the most attractive destination for automotive investment by addressing trading and fiscal costs and delivering low carbon, affordable energy. The news follows SMMT's March publication of Race to Zero: Powering Up Britain's EV Supply Chain, a blueprint for how the UK can boost its electric vehicle manufacturing in the face of fierce global competition. The UK produces almost every component needed to make electric vehicles, from batteries, powertrains, fuel cells and power electronics to anodes, rare earth magnets, graphene and silicon carbide wafers. The challenge is to scale up the capability, harness the strengths of the UK in advanced automotive manufacturing, low carbon energy and R&D and deliver growth for the sector.