UK Car Production Rises Following Easing of Supply Chain Shortages

New figures published by the Society of Motor Manufacturers and Traders (SMMT) has revealed that UK factories have produced an additional 8,050 cars in the past 12 months- a rise of 13.1% in total. The report indicates that an easing of supply chain shortages can be attributed to the rise of 69,707 units.

The figures are indeed good news for manufacturers, as production for home markets soars by 20.3%, while overseas markets are seeing a rise of 11.5%. SMMT figures show that exports are behind the boost in production, with 56,634 vehicles being manufactured in order to complete global orders- a figure which has risen from 50,786 annually, making 81.2% of the total output. Most of these exports, some 59.6%, are heading into the EU, the UK’s biggest trading partner.

Further to this, SMMT report that shipments to the EU have risen by 6.5% overall, a boost which has helped to offset the drop in exports to the US (down by 19.9%) and China (down by 21.6%). Meanwhile, exports to Turkey, Japan, Australia and South Korea have also risen, with the 85% increase representing a total of 6,498 cars- 11.5% of all exports.

As the UK automotive industry continues to transition to hybrid, plug-in hybrid and battery electric vehicles, combined vehicles have surged 72.2% from 15,905 to 27,392 units per month- making up for two in five cars, 39.3%, manufactured. The figures certainly indicate that the industry is now in recovery, and gaining in strength.

The sector as a whole is benefiting from a strong, highly skilled workforce and engineering excellence. And as new electrified vehicle manufacturing continues to take hold, capabilities in the EV supply chain also continue to increase, and things are looking positive in terms of the industry being set to continue on this current path.

The sector must now scale up quickly, to make the UK the go-to for automotive investment. To do this, we must tackle automotive and fiscal costs head-on, to deliver low carbon, affordable energy- and to take advantage of bigger and better global opportunities.