Electric vehicle production near record levels in January

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The shift to electric cars continued in January with combined battery electric, plug-in hybrid and hybrid electric vehicle volumes up 49.9% to 28,329 units.

They represented just over four out of every 10 (41.3%) cars built in January, nearly a monthly record.

Overall, UK car production was steady in the first month of 2023, with output dropping just -0.3% to 68,575 units, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).

Production for the UK rose 5.6% to 12,196 units, while exports fell -1.5%, largely due to the suspension of deliveries to Russia, which accounted for 83.6% of the losses.

In total, some 56,379 cars – more than eight in 10 of all produced – were destined for overseas markets, with over half (56.6%) for the EU, with the next most important global destinations US (9.3%), China (8.8%), Japan (4.4%) and Australia (3.3%).

Mike Hawes, chief executive of SMMT, said: “Auto manufacturing can drive long-term growth for a low-carbon economy but the sector needs competitive conditions to attract investment.

“Recent global developments, however, point to an increase in protectionism which, if not challenged or mitigated, could hurt the UK.

“To deliver a wholesale industry transformation, we needed a competitive and promotional framework that promotes the manufacture of advanced vehicles internationally. We are now looking at the upcoming Budget for the necessary steps that will enable the automotive sector to deliver on its unquestioned potential.”

The latest independent outlook anticipates UK car output to rise 9% to 842,200 cars this year, driven by growth in electric vehicle production. By 2025 production volumes of cars and light vans are expected to exceed one million vehicles.

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