Data from the Society of Motor Manufacturers and Traders Limited (SMMT) showed on Thursday that in February, car production jumped by 13.1% per annum, to 69,707 units, offsetting a 0.3% decrease in January. Economists had expected an increase of only 0.8%. The SMMT said that easing of supply chain shorts, notably of semiconductors, contributed to production growth.
According to the report, the production of cars for the domestic market increased by 20.3% compared to February 2022, while the production of cars for the foreign market increased by 11.5% per annum, while the overall growth was due to exports. To fulfill global orders, 56,634 vehicles were produced (+5848 compared to February 2022), which accounted for 81.2% of production, with most of these exports (59.6%) going to the EU (the UK's largest trading partner)
Shipments to the EU increased by 6.5% per annum, while shipments to the US fell by 19.9% per annum. Shipments to China also decreased significantly - by 21.6% per annum.
The SMMT said that hybrid, plug-in hybrid and battery electric vehicle output continued to surge, increasing 72.2% and accounting for two in five cars produced in February
Commenting on the latest data, Mike Hawes, SMMT Chief Executive, said that the latest growth indicates that the automotive industry is on the road to recovery. The fundamentals of the sector are strong, however, in order to take advantage of global opportunities, we must expand rapidly and make the UK the most attractive place to invest in the automotive industry by addressing trading and fiscal costs and delivering low carbon, affordable energy.