FX.co ★ UK Car Production Logs Biggest Growth In 13 Years: SMMT

UK car production experienced significant growth in 2023, as supply chain issues lessened and the production of electric vehicles expanded. This information was shared by the Society of Motor Manufacturers and Traders (SMMT) on Thursday.

In comparison to the previous year, total car production rose by 16.8%, marking the best growth rate seen since 2010. A total of 905,117 units were produced in 2023, up from 775,014 the previous year.

There was also an increase in demand from both the domestic and foreign markets, with growths of 13.7% and 17.6% respectively. Despite this, the EU remained the largest global market for the industry, with 60.3% of total exports, amounting to 430,411 units. Meanwhile, the US represented the next biggest destination, accounting for 10.3% of exports or 73,571 units. China took third place with 7.2%.

Overall, vehicle production in 2023 increased by 17.0%, resulting in more than 1 million units being produced. According to SMMT, these increases, combined with the easing of pandemic-induced challenges such as chip shortages and lockdowns, saw annual production exceed one million for the first time since 2019.

Additionally, total car production in December increased by 20.7% year on year to 61,768 units, with an especially strong demand from the domestic market, which rose by 42.6%. The export market also displayed a 14.0% increase.

Mike Hawes, SMMT Chief Executive, attributed the increase in UK vehicle production to the receding supply chain issues, the introduction of new car models, and a major £23.7 billion investment. Looking ahead, the focus will now shift to the delivery of these commitments, transitioning the car industry to electric at pace, and scaling up the supply chain.