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Daily Newsletter

31 August 2023

Daily Newsletter

31 August 2023

UK car production surges 31% in July

As supply shortages ease, UK car production surges versus year-ago levels

David Leggett August 31 2023

UK car production surged in July, rising 31.6% to mark the sixth consecutive month of growth, according to the latest figures published by the Society of Motor Manufacturers and Traders (SMMT).

Some 76,451 units rolled off factory lines in July as UK car makers continued their recovery from recent difficulties, notably global chip shortages.

Despite this growth, however, output remained 29.4% lower than pre-pandemic July 2019. A 12-month rolling average illustrates how far the market is down on pre-pandemic levels.

Manufacturing output for the UK market rose 13.7% to 13,187 units in July while exports increased more than a third (36.1%) to 63,264 units, representing by far the bulk of all production in July. More than eight-in-ten (82.8%) cars made were shipped overseas, with the top destination markets being the EU, US, China, Japan and Australia. Combined they accounted for almost 85% of all UK car exports last month.

Electrified vehicles continue to increase their share of output. Production of hybrid electric (HEV), plug-in hybrid (PHEV) and battery electric vehicles (BEVs) continued apace, with combined volumes rising 73.9% to 30,180 units and representing almost two in every five (39.5%) cars made in July. Since January, UK car makers have now turned out more than 200,000 of these vehicles, almost double the amount produced in the same period last year, and a total of 526,619 cars overall, an increase of 14.2% year-on-year.

Mike Hawes, SMMT Chief Executive, said, “Six months of growth shows that British car production is recovering and, with electrified models increasingly driving volumes, the future is more positive. Recent investment announcements have undoubtedly bolstered the sector but global competition remains tough. If we are to attract further investment and produce the next generation of zero emission models and technologies, we need a coherent strategy that builds on our strengths and supports all aspects of advanced automotive manufacturing.”

AI set to be the face of the digital revolution shaping the automotive sector

The automotive sector is undergoing a digital transformation fuelled by changing global supply-chain dynamics, tighter market competition, and rising inflation. AI is a key part of this digital revolution. Focus is directed toward driver assistance features for safety and hazard detection and greater automation of many vehicle processes and functions. Simultaneous localization and mapping (SLAM), facial recognition, and motion tracking will be vital for developing incockpit safety features such as early driver fatigue detection.

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