UK car production rises, but recovery 'way off' says SMMT

According to the latest figures published by the Society of Motor Manufacturers and Traders, UK car production rose for the third consecutive month in July, up 8.6 per cent to 58,043 units.

This is compared with July 2021, which was the worst July since 1956 as car makers faced multiple issues including the global shortage of semiconductors and staff absences arising from the pandemic. This forced some manufacturers to alter summer shutdown timings to help manage the challenge.

Despite three months of growth, year-to-date UK car production remains -16.5% below the same period in 2021, at 461,174 units, representing a shortfall of 91,187. 78.8% of all cars made in Britain since January have been shipped overseas, with some six in 10 of them (59.3%) into the EU.

In July this year, factories turned out 4,605 additional units, a sign that component shortages may finally be beginning to ease. Output, however, still remains -46.4% below pre-pandemic levels, illustrating that full recovery is some way off. Production for the UK market surged 40.7% to 11,583 units with exports also up, but by a more modest 2.8%, in part reflecting the structural and model changes at play.

Mike Hawes, SMMT Chief Executive, said:

A third consecutive month of growth for UK car production is, of course, welcome and gives some hope that the supply chain issues blighting the sector may finally be starting to ease. But other challenges remain, not least energy costs which are increasing at alarming rates. If we are to attract much needed investment to drive the production of zero emission vehicles, urgent action is needed to mitigate these costs to make the UK more competitive for manufacturing. This must be a priority for the next Prime Minister else we will fall further behind our global rivals, risking jobs and economic growth.