UK Car Production Marks Sixth Month Of Growth With Strong February Performance

On Thursday, 28 March 2024, the UK car manufacturing industry marked a significant milestone, achieving its best February performance since 2021. The latest figures released by the Society of Motor Manufacturers and Traders (SMMT) reveal a 14.6% increase in car production, with a total of 79,907 units manufactured. This surge in production is attributed to a notable rise in demand within the domestic market, which saw a 58.0% increase, alongside a modest 4.6% growth in exports.

The domestic market's robust performance resulted in the production of 20,658 units, up by 7,585 from the previous year. Export volumes also experienced growth, with 59,249 cars shipped overseas, accounting for three-quarters (74.1%) of the month's total output. The European Union remains the largest export market, receiving 59.9% of UK car exports, followed by the US (14.8%), China (7.1%), Australia (3.3%), and Turkey (2.3%). Notably, exports to all these markets increased, except for Turkey which saw a decline of 20.3%, with the US leading the growth at an impressive rate of 95.6%.

Electrified vehicles continue to play a crucial role in the UK's automotive sector, representing more than a third (36.3%) of February's total production output. A combined total of 29,038 battery electric, plug-in hybrid, and hybrid vehicles were manufactured, marking a 6.0% increase compared to the previous year. With two-thirds (67.3%) of these models destined for export markets, there is a clear indication of the growing global demand for British-built electrified vehicles.

Mike Hawes, SMMT Chief Executive, commented on the industry's performance, highlighting the importance of maintaining competitiveness in the face of global challenges. "Another month of growth for UK car production is welcome news," he stated. "The industry is transitioning from internal combustion engine cars to electrified vehicles, building on the massive investment commitments made last year." Hawes emphasized the need for continued support from all political parties to ensure the UK automotive industry remains competitive on the global stage.

The positive start to 2024 sees UK car production up by 17.8% at 162,904 units, marking the best start to a year since 2021. However, with major manufacturers announcing the end of production for some long-standing models to make way for new electric variants, future production volumes may vary.

The SMMT plays a pivotal role in supporting the UK automotive industry's interests both domestically and internationally. The automotive sector significantly contributes to the UK economy, with automotive-related manufacturing generating £78 billion in turnover and £16 billion in value added. Annually investing around £3 billion in R&D and employing over 208,000 individuals in manufacturing alone, the industry is an essential part of advancing Britain's economic and environmental agendas.

With more than 25 brands manufacturing over 70 vehicle models in the UK and supported by approximately 2,500 supply chain businesses, the automotive sector not only showcases British engineering excellence but also significantly contributes to global trade with exports worth £94 billion.