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

The efficiency represented the most effective first half since 2021 as producers have been more and more in a position to 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 models, the uplift having been pushed by exports which have surged 13.6% to 359,940 models, representing eight-in-ten vehicles made.

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

Nevertheless, year-to-date output stays -32.5% under 2019 ranges, a mirrored image of structural adjustments within the sector but in addition pointing to the chance for UK automotive makers to get better if a globally aggressive enterprise funding atmosphere might 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 document complete of 170,231 models.

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 models yr thus far.

Mike Hawes, SMMT chief government, mentioned: “UK automotive manufacturing is rising once more, with manufacturing – particularly of electrified fashions – rising 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 appeal to additional investments with a method that focuses on competitiveness and which strengthens the UK’s distinctive automotive providing.”

Business response

Paul Barker, managing editor at Carwow UK, mentioned: “It’s massively 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 automobile 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 vehicles 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 very important – particularly given the velocity at which manufacturing of those vehicles is now occurring.”

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

“However larger 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 following decade of supply for automotive producers.

“More and more, the automotive sector is taking a look at financial situations globally and making strikes now that they really feel will serve them greatest 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.”