The United Kingdom’s car production sustained its growth trajectory for the sixth consecutive month in July, indicating a steady recovery from global chip shortages that had disrupted the automotive industry.
According to the Society of Motor Manufacturers and Traders (SMMT), the UK’s car production saw a notable rise. A total of 76,451 vehicles were manufactured last month, reflecting a substantial 31.6% increase compared to the previous year.
SMMT’s Chief Executive Mike Hawes expressed optimism about the consistent growth trend. He noted, “Six months of growth shows that British car production is recovering and, with electrified models increasingly driving volumes, the future is more positive.”
Electrified Vehicle Contribution
The production of advanced high-tech hybrid electric (HEV), plug-in hybrid (PHEV), and battery electric vehicles (BEVs) witnessed remarkable growth. Output in this category surged by approximately 74%, resulting in 30,180 units manufactured. These electrified vehicles accounted for nearly two out of every five cars produced in July.
A Noteworthy Dip from Pre-Pandemic Levels
Despite the positive growth, the total number of cars manufactured still lagged behind pre-pandemic levels recorded in July 2019 by 29.4%.
Boost from Tata Motors
The UK’s car industry received a boost when India’s Tata Motors made a commitment to construct a significant electric vehicle (EV) battery plant in Britain. This facility is aimed at supplying the renowned Jaguar Land Rover factories.
Challenges in a Competitive Landscape
Although recent investment announcements have provided a boost to the sector, Chief Executive Mike Hawes acknowledged the enduring challenges posed by global competition.
Long-Term Outlook
SMMT’s prior projection indicated that it could take up to five more years for the UK to achieve the production of 1 million or more cars annually, reflecting a comprehensive recovery from the disruptions caused by the pandemic and supply chain challenges.