UK automobile manufacturing surged in July, rising 31.6% to mark the sixth consecutive month of development, in keeping with the most recent figures revealed as we speak by the Society of Motor Producers and Merchants (SMMT).
76,451 models rolled off manufacturing unit strains as UK automobile makers continued their restoration from current difficulties, notably world chip shortages, to ship the most recent fashions to consumers at dwelling and abroad.
Regardless of this development, nevertheless, output remained -29.4% decrease than pre-pandemic July 2019.
The SMMT reported that manufacturing output for the UK rose 13.7% to 13,187 models within the month whereas exports elevated greater than a 3rd (36.1%) to 63,264 models, representing by far the majority of all manufacturing in July.
Greater than eight-in-ten (82.8%) vehicles made had been shipped abroad, with the highest vacation spot markets being the EU, US, China, Japan and Australia. Mixed they accounted for nearly 85% of all UK automobile exports final month.
Manufacturing of the most recent, high-tech hybrid electrical (HEV), plug-in hybrid (PHEV) and battery electrical automobiles (BEVs) continued apace, with mixed volumes rising 73.9% to 30,180 models and representing virtually two in each 5 (39.5%) vehicles made in July. Since January, UK automobile makers have now turned out greater than 200,000 of those automobiles, virtually double the quantity produced in the identical interval final 12 months, and a complete of 526,619 vehicles general, a rise of 14.2% year-on-year.
Mike Hawes, SMMT Chief Govt, stated, “Six months of development exhibits that British automobile manufacturing is recovering and, with electrified fashions more and more driving volumes, the longer term is extra optimistic. Latest funding bulletins have undoubtedly bolstered the sector however world competitors stays powerful. If we’re to draw additional funding and produce the following technology of zero-emission fashions and applied sciences, we want a coherent technique that builds on our strengths and helps all elements of superior automotive manufacturing.”
The figures come after the publication of the most recent impartial manufacturing outlook, which suggests whole UK automobile manufacturing will attain round 860,000 models this 12 months, an uplift of 10.9% on 2022, because the sector recovers from three powerful Covid years, with the chance to get manufacturing again to the million mark in 2028.
Lisa Watson, Director of Gross sales at Shut Brothers Motor Finance, stated: “The UK’s motor manufacturing business continues to bounce again because it goals to return to pre-pandemic ranges. The easing of challenges which have beforehand impacted producers is enabling a rise in manufacturing as demonstrated by one other month of sturdy year-on-year development.
“With the current ULEZ enlargement, producers will probably be keeping track of any modifications in shopper traits and the uptake of other gas automobiles (AFVs). Up to now, the rise in new electrical automobile (EV) registrations has been considerably pushed by fleet and enterprise automobiles, while shopper demand has been comparatively subdued.
“With current analysis from Shut Brothers Motor Finance exhibiting that 70% of sellers consider consumers are searching for cheaper vehicles as a result of cost-of-living disaster, producers and sellers might want to modify plans accordingly to make sure manufacturing and gross sales development stays secure.”
John Veichmanis, CEO of carwow, says: “It feels notably related that UK manufacture of hybrid, plug-in hybrid and battery electrical automobile volumes is up once more this month.
“Our knowledge exhibits that 38% of carwow prospects would now think about an EV as their subsequent automobile – with 25% of individuals inspired to go electrical because of the brand new clear air zones just like the ULEZ enlargement.
“However whereas there’s an urge for food for individuals to modify to EV, a scarcity of infrastructure nonetheless places many individuals off. The continued development in EV manufacturing is optimistic for the British automotive business, but it surely have to be matched by funding in infrastructure to encourage extra personal consumers to think about EVs within the coming years.”
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