UK car production surges by 27 per cent in May

UK car production increased for the fourth consecutive month in May, with 26.9 per cent more cars being manufactured last month compared to the previous year.

With 79,046 new cars being built, it was the best May for production since 2019, according to figures published today by the Society of Motor Manufacturers and Traders (SMMT).

More than 365,000 new cars have been made in the UK in the first five months of 2023 – a 10.7 per cent increase on last year.

Cars destined for UK customers increased by 45.4 per cent to 11,138 units, while export manufacturing jumped by 22.9 per cent to 51,150 cars.

The EU remains the biggest export market, accounting for 35,215 units, which the SMMT says ‘reinforces the need for continued tariff-free trade between the UK and EU’.

The EU’s rules of origin are due to be introduced in January 2024, which stipulate that 45 per cent of an electric vehicle’s parts must be sourced in the UK or from elsewhere in Europe, otherwise an export tariff of 10 per cent would be imposed.

Thirty-five per cent of of new cars built in the UK last month were electrified, helped by popular models like the hybrid Nissan Qashqai and Toyota Corolla, made in Sunderland and Burnaston, Derbyshire, respectively.

Mike Hawes, chief executive of the SMMT, said: “Another month of growth for UK car production is good news and a sign that, despite challenging economic conditions, the industry’s foundations are strong.

“But with weak GDP growth, high inflation and rising interest rates, it’s crucial that UK car factories stay globally competitive.”

Earlier this week the SMMT produced a manifesto that it wants all political parties to adopt for the next parliament, urging the car manufacturing industry to be prioritised in the UK.