UK car manufacturing output surged 31.6% in October, putting the country on track to produce one million light vehicles this year.

UK car manufacturing output was up 31.6% in October with 91,521 units rolling out of factories

More than 91,000 new cars left factory gates, marking the eighth month of growth this year and the best October performance since 2019.

Production for both the home and overseas markets grew last month, up 23.9% and 33.4% respectively, although it was exports which drove output. More than eight in 10 (82.3%) cars were shipped abroad while the EU accounted for almost two-thirds (65.2%) of exports.

UK production of battery electric (BEV), plug-in hybrid (PHEV) and hybrid (HEV) vehicles also rose. Combined output grew 52.1% to represent four in 10 (40.1%) of all cars made in the month; a near record high.

The figures come on the back of a series of significant investment announcements, including last week’s news that Nissan is to build future all-electric versions of its flagship Qashqai and Juke crossovers, along with the next-generation Leaf, at its Sunderland plant.

The last week has also seen a government pledge of over £2bn to support the manufacturing, supply chain and development of zero-emission vehicles set out in the Autumn Statement, while the UK has also launched its EV battery strategy to support the net zero transition.

Given the strong manufacturing performance and recent round of investment into UK vehicle manufacturing, the latest independent light vehicle production outlook has been revised up to 1,008 million cars and light vans in 2023; a rise of 18.0% on last year, with further growth anticipated in 2024.

But the SMMT has warned that this outlook is based on a workable solution to the EU–UK rules of origin requirements for batteries, which are due to get tougher from 1 January 2024. If implemented, these rules could see the application of tariffs on electric vehicles traded across the Channel in both directions, and with just weeks remaining to find a solution, the industry is once again urging all parties to delay their introduction until 2027.

The UK trade body also continues to call for fiscal incentives for private drivers to meet those available for business buyers, notably in company car tax.

It says halving VAT on new EVs, as an example, would be a compelling and affordable measure to help private drivers make the switch, as carmakers face EV quotas from January 2024 under the new ZEV mandate.

Mike Hawes, SMMT chief executive, commented: “Government has rightly recognised the value that automotive manufacturing brings to the UK, backing our industrial transformation. These investments are, however, predicated on a strong domestic market. Incentives for business buyers must be matched with support for private buyers to ensure the maximum return on every penny already pledged to production. The prize for success will be a faster and fairer decarbonisation of Britain, ensuring millions have access to zero-emission mobility.”

Carwow has also called for action to support drivers with the switch to electric cars.

CEO John Veichmanis commented: “There is still some way to go if we are to convince motorists to make the change.

“While our research has shown that two in five (38%) people would consider an EV for their next car, pushing the ban on the sales of new petrol and diesel vehicles back to 2035 has made one in four (24%) of motorists less likely to buy an electric vehicle. Motorists need to trust that the transition is still being supported by policymakers as they decide which car they’ll be choosing next.”

SMMT appoints Adient’s Mick Flanagan as new president

Adient’s Mick Flanagan becomes the new SMMT president

The SMMT has appointed a new president in the form of Mick Flanagan, VP for Volvo, JLR, Toyota, Nissan at automotive seating firm Adient.

Flanagan will assume office from 1 January 2024, replacing Alison Jones, senior vice president global circular economy at Stellantis, who steps down after completing her two-year tenure.

Flanagan draws experience from a long career in the automotive sector, having worked in the industry for 37 years.

Commenting on his presidency, Flanagan said: “As we drive forward, adapting our industry to deliver the exciting new realities of a zero-emission vehicle world, and at the same time overcome macroeconomic headwinds, it is crucial that we have a strong trade body to represent, influence and lead all strands of UK Automotive.

“I look forward to supporting the SMMT team to do just that, and also want to congratulate Alison Jones on her successful tenure as president and thank her for her strong support.”