UK automobile manufacturing topped the 1 million mark signalling a revival of the business’s fortunes, in response to the newest figures from the Society of Motor Producers and Merchants (SMMT).

The easing of pandemic-related challenges, from chip shortages to lockdowns, and growing electrified mannequin manufacturing, mixed to drive annual output to 1,025,474 items – the primary time since 2019.

Robust December performances for each automobile manufacturing, up 20.7% yr on yr, and CV volumes, up 80.3%, rounded off a constructive yr in 2023.

With 905,117 vehicles and 120,357 business automobiles (CVs) produced, output was up 17.0% on the earlier yr.

Eight all-new fashions entered manufacturing in 2023, together with on the newly reopened Ellesmere Port EV solely plant, whereas some £23.7 billion of personal and public funding commitments had been made – greater than within the earlier seven years mixed – from Cowley to Sunderland; gigafactories to R&D services.

The SMMT stated these commitments will drive inexperienced financial progress, create jobs nationwide and transition the sector to electrified automobile manufacturing. UK manufacturing of battery electrical (BEV), plug-in hybrid (PHEV) and hybrid (HEV) automobiles surged to 346,451 items, up 48.0% on the yr earlier than to account for nearly two fifths (38.3%) of total output.

Total, UK automobile manufacturing rose 16.8% in 2023, its greatest progress fee since 2010, with the whole retail worth of all fashions made coming in at greater than £50 billion.

Whereas 191,247 vehicles had been constructed for home consumers, the lion’s share of output was shipped abroad, proof of the contribution automotive exports make to the UK economic system. Yr on yr, exports rose 17.6% in contrast with a 13.7% rise in output for the British market.

The EU remained by far the sector’s largest world market, taking 60.3% of exports, with shipments up nearly 1 / 4 (23.2%) to 430,411 items.

The US was the following largest vacation spot with a ten.3% share of exports (73,571 items), adopted by China with 7.2% (51,202 items), regardless of shipments to each slipping by -9.1% and -2.7% respectively. Turkey, conversely, noticed exports surge 223.8% to 27,346 items, making it the UK’s fourth largest world market forward of Japan, Australia, South Korea, Canada, UAE and Switzerland.

Mike Hawes, SMMT Chief Government, stated: “Receding provide chain challenges, new mannequin introductions and an enormous £23.7bn of funding put UK automobile manufacturing firmly again on observe in 2023. Business will now concentrate on the supply of those commitments, transitioning the sector at tempo to electrical and scaling up the provision chain. With world competitors as fierce because it has ever been and amid escalating geopolitical tensions, each authorities and business should stay singularly targeted on competitiveness, with all the roles and progress this can deliver. We’re in a significantly better place than a yr in the past, however the challenges are unrelenting.”

Regardless of difficult market circumstances, British specialist, luxurious and efficiency automobile makers had one other bumper yr, with mixed volumes climbing 6.3% to 34,613 items, price an estimated £7.1bn. Two high-performance all new electrical fashions entered manufacturing, in Goodwood and Hethel, proof of how electrification is being embraced by producers proper throughout the sector.

The sector additionally obtained a lift on the very finish of 2023 with the deferral of harder guidelines of origin for batteries and EVs traded between the UK and EU. The transfer will assist safeguard the competitiveness of the sector within the UK and Europe, offering precious time for native battery and related element manufacturing to ramp up.

2024 is a pivotal yr to make this occur however headwinds stay, most instantly with assaults on transport within the Crimson Sea elevating the spectre of delays and price pressures.

Nevertheless, with the approaching risk of UK-EU guidelines of origin tariffs overcome, the newest unbiased outlook foresees UK automobile and light-weight van output rising by round 3% in 2024 to 1.04 million items with the potential to exceed 1.2 million items by the top of this decade.

To realize this, the UK should guarantee it stays aggressive, and so the forthcoming Price range is a chance for presidency to introduce measures that may enhance the sector. The SMMT stated these ought to embrace extending Local weather Change Agreements so electrical automobile battery-manufacturing and its related provide chain are eligible for aid; making inexperienced power broadly obtainable and inexpensive; delivering on commitments to enhance grid connections; and taking motion to shut vital labour and expertise gaps.

Speedy supply of the federal government’s Superior Manufacturing Plan, full implementation of the Harrington Overview suggestions, plus a commerce coverage that locations automotive on the coronary heart of all future negotiations would additionally assist the UK consolidate its restoration and turn into a worldwide chief in more and more electrified automobile manufacturing.