6 March 2024

Car production volumes in the UK increase for fifth consecutive month

UK car production surged by over 20% across January and February, reaching nearly 90,000 units, marking the fifth consecutive month of growth as the global appetite for British-made vehicles continued its upward trajectory.

Data provided by the Society of Motor Manufacturers and Traders (SMMT) illustrates that the majority of this production, amounting to 75.8%, was designated for export. Overseas shipments experienced an 11.6% increase in January, totaling 62,938 units, representing a notable spike of 6,559 cars.

However, the most substantial volume growth was observed in the domestic market, witnessing an impressive surge of 64.5%, equating to an additional 7,863 units. Among the global destinations, the European Union (EU) emerged as the primary market for British-built cars, absorbing over half (53.2%) of all exports, followed by the United States (15.0%), China (10.5%), Japan (2.8%), and Australia (2.3%).

Furthermore, the production of battery electric (BEV), plug-in hybrid (PHEV), and hybrid (HEV) vehicles in the UK exhibited a combined growth of 4.5%, totaling 29,590 units, constituting 35.7% of the overall output. Predominantly, these models were destined for export markets.

The outlook for the industry over the past few months has been positive, but drivers and fleet managers must not get complacent due to ongoing economic challenges.

The SMMT advocated for governmental support as well as an industry focus on energy and increasing market demand. Electric and plug-in hybrid vehicles are becoming more accessible to fleets and will continue to throughout the year. Using the Activa Tax guide, fleet managers can better understand the spring budget and therefore better understand their future.