UK vehicle production rose 17 pct in 2023

UK vehicle production rose 17 pct in 2023
This photo taken on Feb. 15, 2023 shows a workshop of Chinese electric vehicle (EV) maker Li Auto Inc. in Changzhou, east China's Jiangsu Province. (Xinhua/Li Bo)

LONDON, Jan. 25 (Xinhua) — A total of 905,117 cars were produced in the United Kingdom (UK) in 2023, up 16.8 percent year-on-year, the highest growth rate since 2010, data from the Society of Motor Manufacturers and Traders (SMMT) showed on Thursday.

With also 120,357 commercial vehicles made in 2023, UK vehicle production hit 1 million units in 2023, up 17 percent over the previous year, according to SMMT.

“The easing of pandemic-related challenges, from chip shortages to lockdowns, and increasing electrified model production, combined to drive annual output above 1 million for the first time since 2019,” the industry body said in a statement.

About 38.3 percent of the overall output were electrified vehicles. UK production of battery electric (BEV), plug-in hybrid (PHEV) and hybrid (HEV) vehicles surged 48 percent over the year before.

In 2023, about 23.7 billion British pounds (30.16 billion U.S. dollars) of private and public investment commitments were made, which was more than the previous seven years combined, said the SMMT.

Of the total production, 21.1 percent of the cars were consumed domestically while the European Union remained the largest overseas market, taking 60.3 percent, followed by the United States at 10.3 percent and China at 7.2 percent. But shipments to the United States and China slipped by 9.1 percent and 2.7 percent respectively from the previous year.

“We are in a much better position than a year ago, but the challenges are unrelenting,” said Mike Hawes, SMMT Chief Executive.

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

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