Car production rises for third straight month

UK car production rose for the third consecutive month in July, up 8.6% to 58,043 units. However, this rise is from a low base – July 2021 was the worst July since 1956.

According to the Society of Motor Manufacturers and Traders (SMMT), factories turned out 4,605 additional units, a sign that component shortages may finally be beginning to ease. Output, however, still remains 46.4% below pre-pandemic levels.

Meanwhile, almost a third (29.9%) of all cars made in July were either battery electric (BEV), plug-in hybrid (PHEV) or hybrid electric (HEV), amounting to 17,356 units, with BEV volumes up 65.9%.

Mike Hawes, SMMT chief executive, said, “A third consecutive month of growth for UK car production is, of course, welcome and gives some hope that the supply chain issues blighting the sector may finally be starting to ease. But other challenges remain, not least energy costs which are increasing at alarming rates. If we are to attract much needed investment to drive the production of zero emission vehicles, urgent action is needed to mitigate these costs to make the UK more competitive for manufacturing. This must be a priority for the next Prime Minister else we will fall further behind our global rivals, risking jobs and economic growth.”