UK car production up 6% in Q1 2023

UK car production has risen by 6% in the first quarter of 2023, with 12,540 more cars being made than in the same period last year.

A total of 219,887 new cars were built during Q1, in the UK, according to the latest figures published by the Society of Motor Manufacturers and Traders (SMMT).

Exports increased by 6.6% and represented almost eight in 10 cars made.

Mike Hawes, SMMT chief executive, said: “A second consecutive month of growth for UK car production gives cause for optimism, though volumes are still well below pre-pandemic levels. If British car manufacturing is to get back towards those levels, with all the economic benefits that brings, we need to match the best in global competitiveness. That means driving down the high cost of UK energy, reforming business rates and vigorously promoting Britain globally to secure the investments essential to a zero carbon automotive future.”  

March rounded off the period with volumes up 6.1% to 81,605 as, again, exports drove growth, up 10.4% to 61,546 units, offsetting a 5.1% decline in car production for the UK as 20,059 cars were made for the domestic market.

At 63.6%, the EU took the largest share of exported cars, (39,172 units), as shipments rose 4.9%, while those to the next biggest markets, the US and China declined by 4.1% and 8.3% respectively.

Exports to Turkey, Japan, Australia and South Korea, meanwhile, all rose, though combined they represented just 11.9% of all cars heading abroad in March. Canada, Mexico and Israel rounded off the top 10 markets for UK car exports last month, with only those to Canada down, by 111 units.

British car makers continued to manufacture the latest hybrid, plug-in hybrid and battery electric vehicles, with combined volumes of these models surging 75.0% in March to 32,546 units. Four in 10 cars built in the month featured ultra-low or zero emission powertrain technology. This trend is set to continue as new products come on stream, with more than 20 models of electric cars, vans, buses, trucks and taxis expected to be in production in the UK by 2025.

UK car production was up 13.1% in February.