Car production in the United Kingdom declined by 27% in March 2023 compared to the previous year, according to the Society of Motor Manufacturers and Traders (SMMT). The number of cars built during the month was 59,467 units, marking the first fall since August 2022.
The decline is primarily attributed to factories adjusting for the production of new models, notably electric vehicles. The SMMT stated that this fall was in line with expectations for a variable year, as manufacturers transition their factories to produce the next generation of cars.
Volumes for the UK market fell by 0.3% to 19,995 units, while production for export decreased by 35.9% to 39,472 units. However, over six in 10 cars made in March were shipped overseas, with the European Union receiving the majority of exports (57.9%), followed by the US (11.4%), China (5.9%), Australia (4.0%), and Japan (1.8%).
Electrified vehicle models, including battery electric, plug-in hybrid, and hybrid, continued to account for more than a third of all production. Despite the decline in March, car production remained up 1.1% in the first quarter of 2023 compared to the same period last year, reaching 222,371 units.
The SMMT chief executive, Mike Hawes, commented on the situation, stating that the fall is not unexpected due to the significant changes occurring within UK car factories as they transition to electric vehicle production. He emphasized the need for continued competitiveness and support to attract further investment and enhance the productivity and decarbonization of the automotive manufacturing sector and its supply chain.
The latest independent production outlook projects a 6.2% decline in UK car and light van production this year to around 940,000 units, primarily due to model changeovers. However, growth is anticipated to resume in 2025, with output expected to exceed one million units from 2026 and reach 1.2 million before the end of the decade as EV production ramps up.
