UK car production continued its streak in February, rising 14.6% to 59,249 units, on the back of strong demand from fleets.

February marked the sixth consecutive month of growth and the best performance for the month since 2021

It heralded the sixth consecutive month of growth and the best February performance since 2021, the Society of Motor Manufacturers and Traders (SMMT) has revealed.

Nearly all volume manufacturers posted uplifts, predominantly driven by output for the domestic market, which grew 58.0% to 20,658 units, an increase of 7,585.

While export volumes rose by a much smaller 4.6% to 59,249, they accounted for three-quarters (74.1%) of all cars made in the month. The European Union received by far the largest proportion of exports (59.9%) followed by the US (14.8%), China (7.1%), Australia (3.3%) and Turkey (2.3%). Volumes to all these markets apart from Turkey (-20.3%) rose, led by the US up 95.6%.

Production of electrified vehicles (battery electric, plug-in hybrid and hybrid) maintained recent levels, representing more than a third (36.3%) of all output in the month.

UK plants turned out a combined 29,038 units, up 6.0% on the year before. With two-thirds (67.3%) of these models built for export, the SMMT said it showed the need to ramp up UK battery production and electric vehicle supply chain capabilities.

Mike Hawes, SMMT chief executive, said: “Another month of growth for UK car production is welcome news, reflecting strong demand at home and around the world for the latest British-built cars. The industry is transitioning from internal combustion engine cars to electrified vehicles, building on the massive investment commitments made last year. The UK industry faces stiff competition, however, as global competitors seek to secure new models and technologies so a commitment to our industrial competitiveness, from all political parties in this likely election year, must be maintained.”

Richard Peberdy, UK head of automotive for KPMG, added: “The positive start to 2024 for UK car manufacturing continues, with production for export and the domestic market rising.

“Fleet buying continues to drive the bulk of the domestic market growth – which includes EVs being purchased for salary sacrifice leasing. Private sales levels have held up relatively well to the ongoing squeeze on household budgets and a higher cost of borrowing, but growing the levels of consumer demand is challenging. Carmakers are trying to stimulate extra demand by discounting and incentivising.”

And Lisa Watson, director of sales at Close Brothers Motor Finance, said: “Car manufacturing continues to rebound as the year progresses, putting an end to any notion that this was a fleeting recovery.

“With the government putting greater emphasis on electric vehicle (EV) sales, and with manufacturing on an upward curve, it’s more important than ever for investment to be directed towards improving the infrastructure required for widespread EV ownership, such as increasing the number of charging points.

“Increased manufacturing output should also lead to more ‘newer’ stock entering the second hand market, which in turn will make prices more competitive in the near term and will be key to encouraging widespread EV adoption.”

Year-to-date figures show UK car production is up 17.8% at 162,904 units, the best start to the year since 2021.

But with major manufacturers recently announcing the end of production of some long-running models as they gear up to make new electric variants, the SMMT has warned production volumes may be more variable in the months ahead.