1 April 2024

UK car production boosted by fleet registrations

In Quarter One of this year the UK's automotive sector continued its upward trajectory, marking the sixth consecutive month of expansion, as revealed by the latest data from the Society of Motor Manufacturers and Traders (SMMT).

Car production has increased by 14.6%, reaching a total of 79,907 units, representing the best performance for the first quarter since 2021. This growth was primarily propelled by a significant uptick in output for the domestic market, which rose by 58% to 20,658 units, an increase of 7,585 units.

Exports also experienced a positive trend, with volumes rising by 4.6% to 59,249 units, an increase of 2,615 units. Approximately three-quarters (74.1%) of all cars manufactured during the month were destined for international markets.

The automotive industry's transition from internal combustion engine vehicles to electrified models is still ongoing but following significant investment commitments made by the industry, the sale of EVs into the fleet industry is remaining high. This is despite the competitive challenges faced by the UK automotive sector; particularly as global rivals intensify efforts to secure new models and technologies.

However, the Society of Motor Manufacturers and Traders (SMMT) cautioned that the landscape may become more variable in the coming months. Major manufacturers have recently announced the cessation of production for some longstanding models as they prepare to introduce new electric variants. This transition emphasizes the need for fleets agility and adaptation within the industry.