UK automobile manufacturing rose 11.7% within the first half of the yr to 450,168 items with June – up 16.2% – the fifth consecutive month of progress, in accordance with the newest figures printed at present by the Society of Motor Producers and Merchants (SMMT). The efficiency represented the very best first half since 2021 as producers had been more and more capable of handle world provide chain challenges – notably the scarcity of semiconductors – that had constrained manufacturing for the reason that pandemic. The information comes every week after the announcement of the event of a large new gigafactory for the UK, serving to anchor EV manufacturing for one among Britain’s greatest automobile makers.

Since January, factories have produced a further 47,037 items, the uplift having been pushed by exports which have surged 13.6% to 359,940 items, representing eight-in-ten vehicles made. Volumes for the UK are up too, rising 4.5% to 90,228 items. Nonetheless, year-to-date output stays -32.5% under 2019 ranges, a mirrored image of structural adjustments within the sector but additionally pointing to the chance for UK automobile makers to recuperate if a globally aggressive enterprise funding setting could be assured.¹

The capability of UK automobile makers to end up the newest, greenest fashions has additionally elevated, with manufacturing of hybrid electrical (HEV), plug-in hybrid (PHEV) and battery electrical automobiles (BEVs) up 71.6% from January to June to a report complete of 170,231 items. This represents greater than a 3rd (37.8%) of all vehicles produced to this point this yr, excellent news given the significance of those merchandise to the way forward for the business and wider society in driving down emissions.

With eight-in-ten UK constructed vehicles heading to abroad markets, free and truthful world commerce – particularly of the newest, zero emission electrical automobiles – is crucial. The European Union (EU) stays the UK’s largest export market accounting for 59.5% of all British automobile shipments, up 11.2% to 214,017 items yr to this point. The EU can be the most important supply of imported automobiles, so safeguarding this vital bilateral buying and selling relationship is crucial for each side, therefore the necessity for a fast and constructive end result to discussions on forthcoming adjustments to the foundations of origin necessities for electrified automobiles and elements.

Trying additional afield, the US, China, Japan and Australia make up the highest 5 world export locations for UK vehicles, with Turkey, South Korea, Canada, the UAE and Mexico finishing the highest ten, shipments to most rose, other than these to the US, down simply -0.1% and China, which fell -6.4%. A few of these key abroad markets are members of the Complete and Progressive Settlement for Trans-Pacific Partnership (CPTPP) to which the UK is now a celebration, and who’ve taken a cumulative 9.6% of UK automobile exports to this point this yr.

Mike Hawes, SMMT Chief Government, mentioned,

UK automobile manufacturing is rising once more, with manufacturing – particularly of electrified fashions – growing and main funding bulletins making headlines. That is testomony to the resilience of the sector and its undoubted strengths – a talented and productive workforce, world-class R&D, and environment friendly, productive crops. However we should construct on this momentum, maintain progress and entice additional investments with a method that focuses on competitiveness and which strengthens the UK’s distinctive automotive providing.

Right now the UK automotive sector helps some 800,000 jobs in complete, together with manufacturing, retail and aftermarket, with 208,000 employees in manufacturing attaining annual turnover of £78 billion, including £16 billion to the UK financial system and investing round £3 billion in R&D yearly. Current funding bulletins augur nicely for the way forward for the sector, however sustained progress requires extra and continued funding. Creating the circumstances for such investments was the topic of SMMT’s ‘Manifesto 2030: Automotive progress for a zero emission future’. Launched final month, it units out 5 key pledges and coverage actions, as a part of an industrial technique, to drive progress and ship internet zero.

The plan requires all political events to commit to draw extra world funding; to assist upskilling employees as they transition from making engines to batteries; to spice up world commerce; to supply reasonably priced, sustainable vitality; and to drive a vibrant electrical automobile market with world-class charging infrastructure, incentives and selection.

The most recent unbiased manufacturing outlook exhibits the potential for UK automobile manufacturing output. Complete UK automobile manufacturing is anticipated to achieve round 860,000 items this yr, an uplift of 10.9% on 2022, because the sector recovers from three powerful Covid years, with the likelihood to get again to close one million vehicles in 2028.² Considerably, that quantity might be electrified, with a 10-fold rise in annual BEV manufacturing anticipated, to greater than 750,000 items per yr by 2030, a possible £106 billion prize from now till the tip of the following parliament.³

1: H1 2019 UK automobile manufacturing 666,521 items.
2: Impartial manufacturing outlook snapshot June 2023 from AutoAnalysis – 2028 expectation primarily based on optimistic state of affairs, 986k vehicles.
3: Worth primarily based on evaluation of recent AutoAnalysis outlook ‘optimistic state of affairs’ for UK manufacturing by powertrain and estimates of battery electrical automobile manufacturing facility gate costs.

SOURCE: SMMT