SMMT: Welcome rise for UK automobile manufacturing

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UK automobile manufacturing rose 13.1% in February, as much as 69,707 models, in response to the newest figures revealed in the present day by the Society of Motor Producers and Merchants (SMMT)

UK automobile manufacturing rose 13.1% in February, as much as 69,707 models, in response to the newest figures revealed in the present day by the Society of Motor Producers and Merchants (SMMT). Factories made a further 8,050 automobiles, with volumes buoyed by an easing of provide chain shortages – notably of semiconductors – which have bedevilled the worldwide business for the reason that early months of 2021.

Manufacturing for each house and abroad markets rose by double digits, up 20.3% and 11.5% respectively, with exports driving the general uplift. 56,634 automobiles had been produced to fulfil international orders, up from 50,786 a yr earlier than and accounting for 81.2% of output, with the vast majority of these exports (59.6%) heading into the UK’s largest buying and selling accomplice, the EU.

Shipments to the EU rose 6.5%, serving to to offset declines to the US (-19.9%) and China (-21.6%), offering additional proof of the necessity for continued free commerce throughout the Channel. Exports to Turkey, Japan, Australia and South Korea, in the meantime, additionally rose, collectively by 85.0%, and collectively represented a complete of 6,498 automobiles, or 11.5% of exports.

The UK’s automotive industrial transition to hybrid, plug-in hybrid and battery electrical automobiles continued, with mixed volumes surging 72.2% from 15,905 to a complete of 27,392 models and accounting for 2 in 5 (39.3%) automobiles produced within the month. Ramping up output of those automobiles nonetheless additional is essential, and a brand new SMMT member survey reveals that 9 in 10 companies need measures to ship low carbon and cost-effective vitality provide, to assist assist the transition to zero emission applied sciences.1

Whereas automotive companies are broadly optimistic in regards to the subsequent 12 months, greater than eight in 10 report that enter and employment prices have risen up to now three months, so motion to alleviate cripplingly excessive and uncompetitive vitality prices ranks as their primary concern. Assist on enterprise charges, easing provide shortages and entry to commerce are additionally all seen as useful for development.

Mike Hawes, SMMT Chief Govt, mentioned,

February’s development in UK automobile manufacturing signposts an business on the highway to restoration. The basics of the sector are sturdy; a extremely expert workforce, engineering excellence, a sector that’s embracing new electrified automobile manufacturing and large ranging capabilities within the EV provide chain. To make the most of international alternatives, nevertheless, we should scale up at tempo and make the UK probably the most enticing vacation spot for automotive funding by addressing buying and selling and financial prices and delivering low carbon, reasonably priced vitality.

The information follows SMMT’s March publication of Race to Zero: Powering Up Britain’s EV Provide Chain, a blueprint for a way the UK can increase its electrical automobile manufacturing within the face of fierce international competitors. It features a new UK EV Provide Chain Listing, which illustrates how, from batteries, powertrains, gasoline cells and energy electronics to anodes, uncommon earth magnets, graphene and silicon carbide wafers, the UK already produces nearly each part wanted to make electrical automobiles. The problem now could be to scale up this functionality, harness the UK’s strengths in superior automotive manufacturing, low carbon vitality and R&D and ship development for the sector.

1. SMMT member Q1 Automotive Insights Survey carried out February 2023.


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