UK builds 450,000 cars in first half of 2023 as the industry recovers

More than 450,000 cars were produced in UK factories in the first six months of the year, according to figures released today by the Society of Motor Manufacturers and Traders (SMMT).

Production numbers increased by 11.7 per cent compared to the same period in 2022, with 450,168 models rolling off car lines between January and June this year.

June was the fifth consecutive month of growth for British car manufacturing, with 84,767 new models being built in the month – a 16.2 per cent rise. Growth is predominantly coming from exports, with 80 per cent of the new cars in the year-to-date total being shipped overseas.

The SMMT says the positive outlook represents manufacturers ‘increasing being able to manage global supply chain challenges’, and overcoming the semiconductor shortage, which has significantly impacted the number of cars that firms could produce in the past couple of years.

There has been a sharp 71.6 per cent increase in the number of hybrid and electric models produced, too, with 170,231 electrified cars being made in the first half of the year, representing 37.8 per cent of all cars produced in 2023.

Mike Hawes, SMMT chief executive, said: “UK car manufacturing is growing again, with production – especially of electrified models – increasing and major investment announcements making headlines. This is a 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.”

Last week Tata Motors, the Indian owner of Jaguar Land Rover, announced it would build a new £4bn gigafactory in Somerset. When operational in 2026, it will be one of the biggest in Europe, and have the capacity to produce 40GWh of cells annually, supporting not only electric JLR models but also those for other manufacturers.