The latest figures from the Society of Motor Manufacturers and Traders (SMMT) suggest that UK electric vehicle production has risen by 71.7% since January.
The first half of 2023 has seen record levels of UK electric vehicle production, and the highest first half since 2021 for all vehicle manufacturing in the UK.
The results highlight the resilience of the UK car production sector to global supply chain challenges, such as the semiconductor shortage that hampered production since the pandemic.
The news of increased UK electric vehicle production rates comes at a pertinent time, as Tata, the owner of Jaguar Land Rover, announced plans for a large gigafactory in the UK.
The figures highlight the UK’s ambitions to capture the global EV market, which is estimated to be worth £106bn to the UK economy by 2030.
Will UK electric vehicle production achieve its targets?
Overall, car manufacturing in the UK rose 11.7% in the first half of 2023 to 450,168 units, with June up 16.2%, making it the fifth consecutive month of growth.
UK electric vehicle production now represents 37.8% of all cars developed in the UK. From January to June a record total of 170,231 units were made, which includes hybrid electric (HEV), plug-in hybrid (PHEV) and battery electric vehicles (BEVs).
This is promising for the industry, as UK car manufacturers will face £15,000 fines per car produced unless zero-emission vehicles make up 22% of total sales.
Total UK electric vehicle production is forecasted to reach 860,000 units this year, a 10.9% increase on 2022, potentially rising to around one million by 2028.
Mike Hawes, SMMT Chief Executive, commented: “UK car manufacturing is growing again, with production – especially of electrified models – increasing and major investment announcements making headlines.
“This is testament to the resilience of the sector and its undoubted strengths – a skilled and productive workforce, world-class R&D, and efficient, productive plants.
“But we must build on this momentum, sustain growth, and attract further investments with a strategy that focuses on competitiveness, and which strengthens the UK’s unique automotive offering.”
Export partnerships will be key to the sectors growth
Currently, 8 in 10 vehicles produce in the UK are sold to overseas markets, highlighting that free and fair global trading, especially in driving electric vehicle uptake, is essential.
The European Union is the UK’s highest export market, representing 59.5% of car shipments, and is also the largest source of imported vehicles.
With new rule of origin on the horizon for electric vehicles and components, the SMMT says discussions between the UK and EU must focus on reinforcing this bilateral trading relationship.
Outside of the EU, the US, China, Japan, and Australia make up the top 5 export markets for UK cars globally, with Turkey, South Korea, Canada, the UAE and Mexico completing the top 10.
With 8 in 10 UK built cars heading to overseas markets, free and fair global trade – especially of the latest, zero emission electric vehicles – is essential
The EU remains the UK’s largest export market accounting for 59.5% of all British car shipmentshttps://t.co/vsSgrNljdt pic.twitter.com/OzbFh1qHJt
— SMMT (@SMMT) July 27, 2023
Some of these nations are members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which the UK is now part of, and will help to strengthen export opportunities for UK manufacturers.
