UK automotive manufacturing is constructing momentum with a rise of 11.7% within the first half of the 12 months to 450,168 items, in accordance with the newest figures from the Society of Motor Producers Merchants (SMMT).

The efficiency represented one of the best first half since 2021 as producers had been more and more capable of handle world provide chain challenges – notably the scarcity of semiconductors – that had constrained manufacturing because the pandemic.

The information comes every week after the announcement of the event of a large new £4 billion gigafactory for the UK, serving to anchor EV manufacturing for JLR.

Since January, factories have produced an extra 47,037 items, the uplift having been pushed by exports which have surged 13.6% to 359,940 items, representing eight-in-ten automobiles made.

Volumes for the UK are up too, rising 4.5% to 90,228 items.

Nevertheless, year-to-date output stays -32.5% beneath 2019 ranges, a mirrored image of structural adjustments within the sector but additionally pointing to the chance for UK automotive makers to recuperate if a globally aggressive enterprise funding atmosphere will be assured.

Manufacturing of hybrid electrical (HEV), plug-in hybrid (PHEV) and battery electrical automobiles (BEVs) up 71.6% from January to June to a report complete of 170,231 items.

The European Union (EU) stays the UK’s largest export market accounting for 59.5% of all British automotive shipments, up 11.2% to 214,017 items 12 months thus far.

Mike Hawes, SMMT chief govt, stated: “UK automotive manufacturing is rising once more, with manufacturing – particularly of electrified fashions – growing and main funding bulletins making headlines.

“That is testomony to the resilience of the sector and its undoubted strengths – a talented and productive workforce, world-class R&D, and environment friendly, productive vegetation. However we should construct on this momentum, maintain progress and entice additional investments with a technique that focuses on competitiveness and which strengthens the UK’s distinctive automotive providing.”

Business response

Paul Barker, managing editor at Carwow UK, stated: “It’s vastly encouraging to see the speed of UK automotive manufacturing accelerating for the fifth month working as we shut H1. These figures are excellent news all spherical.

“Following final week’s announcement of Tata Group’s funding into constructing a brand new gigafactory within the UK for batteries, it’s significantly pleasing to see that hybrid, plug-in hybrid and battery electrical car volumes are up a record-breaking 71.6% from January to June.

“With new and expanded low emission zones being launched in cities throughout the nation, and the Authorities staying agency on the deadline to part out new petrol and diesel automobiles by 2030, a shift to those classes is important.

“The necessity for a widespread scale-up of the variety of public cost factors for electrical automobiles stays important – particularly given the pace at which manufacturing of those automobiles is now occurring.”

Richard Peberdy, UK head of automotive for KPMG, stated: “Elevated automotive manufacturing volumes are clearing the backlog of automotive orders that constructed up over latest years of decreased provide.

“However increased inflation and rates of interest are pressuring enterprise funding, at a time when key decarbonisation choices are being taken, together with new product and know-how growth or greening and on-shoring of provide chains.  Selections taken now will form the subsequent decade of supply for automotive producers.

“More and more, the automotive sector is taking a look at financial circumstances globally and making strikes now that they really feel will serve them finest within the medium to long term.  Guidelines of origin adjustments in 2024 are one such consideration – and producers on each side of the Channel are hoping for an agreeable decision that accounts for the battery manufacturing trade in Europe nonetheless being in its infancy.”