UK car production grows for second month in a row

Vehicle production in the UK increased for the second consecutive month in June.

Figures released by the Society of Motor Manufacturers and Traders (SMMT) show that 72,946 new cars rolled off UK production lines, representing a year-on-year increase of 5.6 per cent. It follows on from a 13 per cent growth in May, which was the first time that production had increased in close to a year.

Overall, car production is down by 19.2 per cent in the first six months of the year, with 95,792 fewer cars built compared with the same period in 2021. In total, 403,131 cars have been built, with the SMMT stating that this represents the weakest first half since the pandemic affected 2020, and worse than 2009 when the global financial crisis crippled demand.

Mike Hawes, SMMT Chief Executive, said: “Car manufacturers have been suffering from a ‘long Covid’ for much of 2022, as global component shortages undermine production and put supply chains under extreme pressure. Key model changeovers and the closure of a major plant last year have also impacted output, but there are grounds for optimism with rising output over the last two months.”

This year-to-date decline has mainly come about as a result of a drop in export volumes, with 23.9 per cent fewer cars produced for overseas markets in the first half of 2022. It represents a loss of 99,388 units compared with the same period last year.

However, production of battery electric vehicles (BEVs) has continued to swell, with 32,282 produced in the first half of the year – an increase of 6.5 per cent. During June, the production of BEVs increased by 44.2 per cent, resulting in a record output of zero-emissions vehicles for the month.

In contrast, the production of hybrid, petrol and diesel cars has declined by 19.9, 8.0 and 60.2 per cent respectively in the first half of 2022.

Hawes added: “Sky-high energy costs, non-competitive business rates and skills shortages must all be addressed if we are to build on our inherent strengths and seize the opportunities presented by the dash for decarbonised mobility.”