UK car production surpasses one million for first time since pandemic

File photo dated 06/07/21 of the Astra assembly line at Vauxhall's plant in Ellesmere Port, Cheshire. The new car market has recorded its longest period of year-on-year growth since 2015, new figures show. The Society of Motor Manufacturers and Traders said registrations increased by 16.7% in May, which was the 10th consecutive monthly rise. Despite the boost, sales are 21% down on pre-coronavirus levels in 2019. Issue date: Monday June 5, 2023.
UK car production rose 16.8% in 2023, its best growth rate since 2010. (Peter Byrne, PA Images)

Production numbers in the UK hit one million vehicles for the first time since the pandemic, according to new figures.

A total of 1,025,474 cars and commercial vehicles were built, an increase of 17% on the previous year, said the Society of Motor Manufacturers and Traders (SMMT).

Battery electric and plug in hybrid along with hybrid vehicles climbed to 346,451 up by 48% on the year before.

"The easing of pandemic-related challenges, from chip shortages to lockdowns, and increasing electrified model production, combined to drive annual output," it added.

Read more: Best UK mortgage deals of the week

Overall, UK car production rose 16.8% in 2023, its best growth rate since 2010, with the total retail value of all models made coming in at more than £50bn.

The bulk of vehicles made in the UK are for export, with the European Union by far its biggest market, taking 60.3% of exports or 430,411 cars.

The US was the next biggest destination with a 10.3% share of exports or 73,571 units.

The number one British export was the popular Nissan Qashqai, followed by the Mini and the Toyota Corolla.

Ranger Rover might not be number one but its cars dominate the export list, with luxury models such as the Range Rover Sport or Velar and even the Evoque part of the top ten export list.

SMMT chief executive Mike Hawes said: “Receding supply chain challenges, new model introductions and a massive £23.7bn of investment put UK vehicle production firmly back on track in 2023.

Read more: Pay monthly car insurance customers stung with £300 penalty

“Industry will now focus on the delivery of these commitments, transitioning the sector at pace to electric and scaling up the supply chain.

The industry body forecasts UK car output to rise slightly this year, when a general election is expected.

"The latest independent outlook foresees UK car and light van output rising by around 3% in 2024 to 1.04 million units, with the potential to exceed to 1.2 million units by the end of this decade," Hawes added.

Watch: European carmakers race China for low-cost EVs

Download the Yahoo Finance app, available for Apple and Android.

Advertisement