UK Car Industry Defies Tradition with Record-Breaking Manufacturing Figures, Surpassing 1 Million Mark in 2021

The Society of Motor Manufacturers and Traders recently released their latest figures, which indicate a significant increase in production for the UK car industry during August. The manufacturing output saw an impressive rise of 40.6%, resulting in 99,910 units being produced during the month. The year-to-date production volumes surpassed one million, reaching a total of 1,011,127, representing a 1.6% gain.

It is also worth noting that there was a marked increase in the number of cars produced for export, with figures up by 38.8% to 73,219 units. Despite this positive news, the overall number of vehicle exports for the year has still fallen by 1% compared to the previous year.

Figures from the Society of Motor Manufacturers and Traders show manufacturing output increased 40.6% in August to 99,910 (2014: 71,067). The figure takes year-to-date production volumes past one million to 1,011,127 (2014: 994,951); a gain of 1.6%.

More encouraging was that the number of cars produced for export rose, up 38.8% to 73,219 (2014: 52,739). However, the overall number of vehicles produced for export this year – 773,689 – still represents a 1% fall on the situation 12 months ago.

Mike Hawes, SMMT Chief Executive, said: “The quieter summer months are traditionally subject to fluctuation as production is paused for essential upgrades, and August’s strong growth wasn’t unexpected given the 22.1% fall in the same month last year when the 2014 holiday period fell.

“The rise also follows a flatter July in line with this year’s earlier scheduled shutdown. That said, with an overall increase of 1.6% so far in 2015 and the strongest year-to-date performance since 2008, the industry is in a good position.”

The rise in production is a promising sign for the industry and demonstrates that it is well-positioned for future growth. It is also noteworthy that this impressive performance was achieved despite ongoing volatility in global markets and challenges such as the recent issues faced by Volkswagen.

John Leech, head of automotive at KPMG UK, commented on the latest figures, stating; ““Although this could be influenced by an earlier summer shutdown, the strong August figures are backed up by the fact year to date output is up by 1.6%, with a particularly strong increase within the home market at 11.1%,” he said

“The resilience of UK car manufacturing figures is apparent despite ongoing volatility in the global markets, and the high-profile challenges facing Volkswagen this week. This resilience has benefited from the £6bn investment by vehicle manufacturers in developing long-term strategies to support new models and facilities in the UK. The increased capacity will service the continuing strength of UK market, as well as the export market across continental Europe.”

The UK car industry has benefited greatly from significant investment by vehicle manufacturers, with a total of £6bn being invested in developing long-term strategies to support new models and facilities in the UK. Recent announcements from companies such as Honda and Nissan committing to producing new models in the UK bode well for the industry’s future. Year-to-date performance remains subdued with total volumes down 3.4% at 1,562,503 (2014: 1,617,265).

Mike Hawes said: “Engine manufacturing enjoyed a boost in August, as factories came back online following the traditional summer shutdown in July. A shift in holiday schedules meant the industry’s seasonal pause in production arrived a month earlier than usual, resulting in bigger fluctuations in output.”

“However, with more than 1.5m engines produced in the year-to-date, and significant investment in new plants set to be realised this autumn, the prospects for future month-on-month growth look promising.”

The latest figures from the Society of Motor Manufacturers and Traders paint a positive picture for the UK car industry, demonstrating its resilience and potential for growth.