First half of 2023 sees rise in UK hybrid, PHEV & EV production

According to SMMT data, production of hybrid electric (HEV), plug-in hybrid (PHEV) and battery electric vehicles (BEVs) is up 71.6% from January to June to a record total of 170,231 units. This represents more than a third (37.8%) of all cars produced so far this year.

UK car production in general rose 11.7% in the first half of the year to 450,168 units with June – up 16.2% – the fifth consecutive month of growth. Since January, factories have produced an additional 47,037 units, the uplift having been driven by exports which have surged 13.6% to 359,940 units, representing eight-in-ten cars made. Volumes for the UK are up too, rising 4.5% to 90,228 units. However, year-to-date output remains -32.5% below 2019 levels.

With eight-in-ten UK built cars heading to overseas markets, free and fair global trade – especially of the latest, zero emission electric vehicles – is essential. The European Union (EU) remains the UK’s largest export market accounting for 59.5% of all British car shipments, up 11.2% to 214,017 units year to date. The EU is also the largest source of imported vehicles, so safeguarding this important bilateral trading relationship is essential for both sides, hence the need for a quick and positive outcome to discussions on forthcoming changes to the rules of origin requirements for electrified vehicles and components.

Looking further afield, the US, China, Japan and Australia make up the top five global export destinations for UK cars, with Turkey, South Korea, Canada, the UAE and Mexico completing the top ten, shipments to most rose, apart from those to the US, down just -0.1% and China, which fell -6.4%. Some of these key overseas markets are members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to which the UK is now a party, and who have taken a cumulative 9.6% of UK car exports so far this year.

Mike Hawes, SMMT Chief Executive, said: "UK car manufacturing is growing again, with production – especially of electrified models – increasing and major investment announcements making headlines. This is testament to the resilience of the sector and its undoubted strengths – a skilled and productive workforce, world-class R&D, and efficient, productive plants. But we must build on this momentum, sustain growth and attract further investments with a strategy that focuses on competitiveness and which strengthens the UK’s unique automotive offering."