UK car production up 6% in Q1 as chip shortage eases

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UK car production rose 6% in the first three months of 2023, to 219,887 units.

The Society of Motor Manufacturers and Traders (SMMT), which released the figures said that as global shortages of semiconductors and other components started to diminish, factories produced 12,540 units more than Q1 last year.

March ended the period with volume up 6.1% to 81,605 as, again, exports fueled growth, rising 10.4% to 61,546 units, offsetting a -5.1% drop in UK car production as 20,059 cars were built for the domestic market.

Combined sales of hybrid, plug-in hybrid and battery electric vehicles increased 75% in March to 32,546 units.

Four out of 10 cars built in a month feature ultra-low or zero emission powertrain technology. SMMT says this trend will continue as new products enter service, with more than 20 models of electric cars, vans, buses, trucks and taxis expected to be produced in the UK by 2025.

Mike Hawes, chief executive of SMMT, said, “The second straight month of growth for UK car production is encouraging, although volumes are still well below pre-pandemic levels.

“If British car manufacturers are to return to that level, with all the economic gains that result, we need to match the best in global competitiveness. That means bringing down the UK’s high energy costs, reforming business rates and vigorously promoting the UK globally to secure important investments for a zero carbon automotive future.”



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