UK car production increases 21% year on year in January

UK car production increased dramatically in January with output rising by more than a fifth year on year, bolstered by healthy growth in electrified vehicle production.

British car manufacturing grew 21% to 82,997 units, according to figures from the Society of Motor Manufacturers and Traders, representing the best January performance since 2021. 

It’s also the fifth consecutive month of growth in the UK, which the SMMT attributed to rising interest in British-built brands plus the gradual easing of global supply chain challenges. 

Production of vehicles destined for the domestic market achieved 64.5% growth - the largest increase of the month - to 7863 units. Of all vehicles produced, 75.8% were exported overseas, with shipments up by 11.6% to 62,938 units. 

According to the SMMT, the EU was once again the largest market for British-built cars. Of all cars exported in January, 53.2% headed to the EU, with 15% sent to the US and 10.5% to China. 

The month was boosted by the increased production of electrified vehicles, including EVs, hybrids and plug-in hybrids, which together grew 4.5% to 29,595 units and represented 35.7% of all cars built in the UK. 

Those vehicles include the Jaguar E-Pace, Nissan Qashqai and Toyota Corolla. 

“The majority of these models were exported, evidence of the importance of not only producing increasing numbers of electrified cars but of ensuring free and fair trading arrangements with markets around the world,” said the SMMT. 

SMMT CEO Mike Hawes described January as “a positive start” but warned of the threats posed by several global issues. 

“There can be no room for complacency given economic headwinds and geopolitical tensions,” said Hawes. “There must be a relentless commitment to competitiveness, building on the significant recent investments into the sector.”

Hawes also called for more manufacturing support from the government in the upcoming budget, details of which are due to be announced by chancellor Jeremy Hunt on Wednesday 6 March. 

“The forthcoming budget is a chance for government to do just that by introducing measures to boost UK automotive manufacturing, focused on energy, investment competitiveness and market demand," said Hawes. 

The SMMT added that the Red Sea attacks may affect February’s output. Despite this, it predicted a rise of 3% year on year for the month.