The UK’s automotive manufacturing sector remained “properly beneath pre-pandemic ranges” throughout Q1 2023, regardless of a 6% enhance in manufacturing volumes over the three-month interval.
Manufacturing volumes have been up 6.1% in March, to 81,605, items as a ten.4% enhance in exports (to 61,586) offset a 5.1% decline in demand from home prospects, the Society of Motor Producers and Merchants (SMMT) revealed this morning.
The end result left Q1’s volumes up 6% at 219,887 items, which is 40.6% down on a Q1 2019 end result which represented a 15.9% year-on-year decline on the time.
SMMT chief govt Mike Hawes referred to as for UK Authorities motion to help a sector confronted with strain from abroad.
“A second consecutive month of progress for UK automotive manufacturing provides trigger for optimism, although volumes are nonetheless properly beneath pre-pandemic ranges,” stated Hawes.
“If British automotive manufacturing is to get again in the direction of these ranges, with all of the financial advantages that brings, we have to match one of the best in world competitiveness.
“Which means driving down the excessive price of UK vitality, reforming enterprise charges and vigorously selling Britain globally to safe the investments important to a zero carbon automotive future.”
The SMMT stated that an easing of the worldwide scarcity of semiconductors and different elements had resulted in Q1’s 12,540 unit uplift in manufacturing, with exports growing 6.6% throughout the three months – representing virtually eight-in-10 vehicles made.
In March, the EU took the biggest share of exported vehicles, accounting for 63.6% of exports (39,172 items), as shipments rose 4.9%, whereas these to the subsequent greatest markets, the US and China declined by 4.1% and eight.3%.
The manufacturing of other gasoline autos (AFVs) surged by 75% in March to 32,546 items, with four-in-10 vehicles that includes ultra-low or zero emission powertrain expertise, the SMMT stated.
Greater than 20 fashions of electrical vehicles, vans, buses, vehicles and taxis anticipated to be in manufacturing within the UK by 2025, it added.
Commenting on as we speak’s (April 28) automotive manufacturing information, KPMG UK head of automotive Richard Peberdy stated: “Regardless of this upturn in manufacturing, total volumes of autos produced stays decrease than earlier than the pandemic.
“While it’s excellent news that manufacturing ranges are once more growing, large questions nonetheless stay unanswered about how the UK will produce electrical autos at a lot bigger scale and what the nation’s technique is to make sure that its automotive business can compete with international locations who’ve already developed daring coverage strikes to encourage inward funding in subsequent era manufacturing amenities.”
Hugo Griffiths, client Editor at carwow, stated: “We’re a way off the heady 271,000 vehicles we constructed means again in March 2017, however with each different automotive made right here being exported to EU markets, we’ve ridden out a lot of the waves latest years have thrown at us.
“With recent commitments from JLR and rising output ranges throughout the business, UK automotive stays in optimistically impolite well being.”