UK car production grows 21 per cent in January

January was a positive month for UK car production, with volumes rising 21.0% to 82,997 units, according to the latest figures by the Society of Motor Manufacturers and Traders (SMMT).

This marks the best January performance since 2021 and the fifth straight month of growth.

The bulk of production was for export (75.8%), with overseas shipments up 11.6% to 62,938 units – a rise of 6,559. However, output for the domestic market commanded the biggest volume growth, up by an additional 7,863 units (+64.5%). The EU was the largest global market for British-built cars, taking more than half (53.2%) of exports, followed by the US (15.0%), China (10.5%), Japan (2.8%) and Australia (2.3%). Shipments to the EU, US and China all rose, by 5.0%, 81.1% and 33.2% respectively.

UK production of battery electric (BEV), plug-in hybrid (PHEV) and hybrid (HEV) vehicles rose again by a combined 4.5% to 29,590 units to account for 35.7% of overall output. In line with overall figures, the majority of these models were exported, evidence of the importance of not only producing increasing numbers of electrified cars but of ensuring free and fair trading arrangements with markets around the world.

Mike Hawes, SMMT Chief Executive, said: "A positive start to the year for UK car production bodes well for the industry and the many thousands of livelihoods on which it depends. There can be no room for complacency, however, given economic headwinds and geopolitical tensions. There must be a relentless commitment to competitiveness, building on the significant recent investments into the sector. The forthcoming Budget is a chance for Government to do just that by introducing measures to boost UK automotive manufacturing, focused on energy, investment competitiveness and market demand."