UK car production rose 6.0% in the first three months of 2023 to 219,887 units, as the global shortage of semiconductors and other components begins to ease.

March heralded a second consecutive month of growth for UK car production

Some 12,540 extra units were produced compared to Q1 2022, according to the new Society of Motor Manufacturers and Traders (SMMT) figures.

The increase was driven by a 6.1% rise in March, with volumes up to 81,605 units, marking a second consecutive month of growth for UK car production. That was thanks to a 10.4% exports growth, which offset a 5.1% home market decline.

Hybrid, plug-in hybrid and battery electric vehicle production continued to surge, up 75.0% in March to 32,546 units. Four in 10 cars built in the month featured ultra-low or zero-emission powertrain technology. It’s a trend set to continue as new products come on stream; more than 20 models of electric cars, vans, buses, trucks and taxis are expected to be in production in the UK by 2025. The forthcoming ZEV mandate will also help accelerate zero-emission vehicle production.

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.”

Lisa Watson, director of sales at Close Brothers Motor Finance, said the figures paint a relatively stable and steady picture for the car sector.

“Whilst production levels continue to lag behind pre-pandemic rates, the numbers indicate positive signs of growth and fuel optimism for the rest of the year.

“As the UK economy and manufacturing industry recovers and stabilises, the long-term focus of manufacturers will need to be the market’s transition towards alternative fuel vehicles (AFVs). Though further support and incentives would be welcomed, the Government’s progression of the ZEV mandate is a step in the right direction for AFV producers.”