SMMT: UK car production rises for third consecutive month

UK car production rose for the third consecutive month in July by 8.6% to 58,043 units, according to the latest figures released today by the Society of Motor Manufacturers and Traders (SMMT). However, the performance needs to be seen in context as it compares to July 2021, which was the worst July since 1956, when carmakers faced a host of challenges, including a global semiconductor shortage and staff shortages from a “pingdemia” that forced some change the daylight saving time to help deal with the problem.

Factories produced 4,605 ​​additional units in July this year, suggesting that component shortages may finally be starting to ease. Output, however, is still -46.4% below pre-pandemic levels, indicating that a full recovery is still a long way off.¹ Production for the UK market was up 40.7% to 11,583 units, with exports also up but by a more modest 2.8%, partly reflecting structural and model changes.

Deliveries continue to drive the sector, accounting for eight out of 10 vehicles produced (80.0%), although exports to the main EU and US markets fell by -7.3% and -22.8% respectively, while orders from China and Japan grew by 54.0% and 40.1%. Meanwhile, nearly a third (29.9%) of all vehicles produced in July were electric (BEV), hybrid (PHEV) or hybrid (HEV) at 17,356 units, with BEV volumes doing particularly well, up 65, 9%.

Despite three months of growth, UK car production YTD remains -16.5% below the same period in 2021 at 461,174 units, a shortfall of 91,187. The decline is due to supply chain shortfalls, structural changes and weak exports, which fell by -21.3% to 363,223 units, with UK production growth of 7.6% unable to offset these losses. 78.8% of all cars made in Britain since January were sent abroad, with around six in 10 of them (59.3%) going to the EU.

On July 1, 2019, 108,239 cars were produced

SOURCE: SMMT