UK automotive manufacturing is constructing momentum with a rise of 11.7% within the first half of the 12 months to 450,168 items, based on the most recent figures from the Society of Motor Producers Merchants (SMMT).

The efficiency represented the perfect first half since 2021 as producers have been more and more in a position to handle international provide chain challenges – notably the scarcity of semiconductors – that had constrained manufacturing for the reason that pandemic.

The information comes per week after the announcement of the event of an enormous new £4 billion gigafactory for the UK, serving to anchor EV manufacturing for JLR.

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 automobiles made.

Volumes for the UK are up too, rising 4.5% to 90,228 items.

Nonetheless, year-to-date output stays -32.5% beneath 2019 ranges, a mirrored image of structural modifications within the sector but additionally pointing to the chance for UK automotive makers to get better if a globally aggressive enterprise funding setting might be assured.

Manufacturing of hybrid electrical (HEV), plug-in hybrid (PHEV) and battery electrical automobiles (BEVs) up 71.6% from January to June to a file whole of 170,231 items.

The European Union (EU) stays the UK’s largest export market accounting for 59.5% of all British automotive shipments, up 11.2% to 214,017 items 12 months up to now.

Mike Hawes, SMMT chief govt, stated: “UK automotive manufacturing is rising once more, with manufacturing – particularly of electrified fashions – rising 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 development and entice additional investments with a method that focuses on competitiveness and which strengthens the UK’s distinctive automotive providing.”

Trade response

Paul Barker, managing editor at Carwow UK, stated: “It’s vastly encouraging to see the speed of UK automotive manufacturing accelerating for the fifth month working as we shut H1. These figures are excellent news all spherical.

“Following final week’s announcement of Tata Group’s funding into constructing a brand new gigafactory within the UK for batteries, it’s significantly pleasing to see that hybrid, plug-in hybrid and battery electrical automobile volumes are up a record-breaking 71.6% from January to June.

“With new and expanded low emission zones being launched in cities throughout the nation, and the Authorities staying agency on the deadline to section out new petrol and diesel automobiles by 2030, a shift to those classes is crucial.

“The necessity for a widespread scale-up of the variety of public cost factors for electrical automobiles stays very important – particularly given the pace at which manufacturing of those automobiles is now occurring.”

Richard Peberdy, UK head of automotive for KPMG, stated: “Elevated automotive manufacturing volumes are clearing the backlog of automotive orders that constructed up over current years of decreased provide.

“However larger inflation and rates of interest are pressuring enterprise funding, at a time when key decarbonisation selections are being taken, together with new product and know-how improvement or greening and on-shoring of provide chains.  Choices taken now will form the subsequent decade of supply for automotive producers.

“More and more, the automotive sector is financial situations globally and making strikes now that they really feel will serve them finest within the medium to long term.  Guidelines of origin modifications in 2024 are one such consideration – and producers on each side of the Channel are hoping for an agreeable decision that accounts for the battery manufacturing business in Europe nonetheless being in its infancy.”