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The Markets
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The Markets
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Transport

UK car production jumps 10% as exports soar

British car manufacturing made further gains in April, with output increasing for the third month in a row, up 9.9%, according to the latest figures by the Society of Motor Manufacturers and Traders (SMMT).

Mike Hawes, SMMT Chief Executive, said, “UK car production is starting to motor again, good news for the sector and the many thousands of jobs and livelihoods it sustains.”

The data showed 66,527 cars rolled out of factory gates, 5,973 more than in April last year as global supply chain shortages, most notably of semiconductors, continued to ease.

Exports drove volumes, rising 14.7% to 54,820 units, with more than eight in 10 cars (82.4%) heading overseas, this was the third month in a row that exports saw a double-digit rise.

The European Union remained by far the most important global market, taking 58.4% of all exports, equivalent to 32,002 units with volumes up 12.2%, followed by the US, China and Australia.

Shipments to these destinations changed by 36.2%, -3.6% and 226.8% respectively, with buyers choosing the latest British-built models, including many with hybrid or zero emission powertrain technology.

UK factories continued to turn out increasing numbers of hybrid electric (HEV), plug-in hybrid (PHEV) and battery electric vehicles (BEVs), with combined volumes up 56.2% in April and representing well over a third of all production (37.7%).

The news comes as the UK and EU automotive sectors face a looming cliff-edge with rules of origin agreed in the UK-EU Trade and Cooperation Agreement, governing local content for electric vehicles and batteries, due to get tougher from 1 January 2024.

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