LONDON: The UK automotive sector has seen a strong recovery in October, with car production increasing for the eighth consecutive month and reaching the highest level since 2019.

According to the Society of Motor Manufacturers and Traders (SMMT), more than 91,500 cars were built in October, a 31.6 per cent increase compared to the same month last year. This was the best October performance since 2019, when 94,000 cars were produced.

The SMMT also revised its annual forecast for 2023, predicting that total car and light van production could exceed one million units for the first time since 2019. This is 18 per cent higher than the output in 2022, which was the worst year for UK car production since 1956.

However, the trade body warned that the industry still faces challenges, such as supply chain disruptions, labour shortages and rising energy costs. It also said that the UK car production remains well below the pre-pandemic levels of 1.5 million or more per year.

The growth in October was driven by strong export demand, especially from the EU, which accounts for almost two-thirds of UK car exports. More than four in five cars made in the UK were shipped abroad, with exports to the EU increasing by 58 per cent. Turkey also emerged as a key market, growing almost four-fold and becoming the third largest destination for UK cars, ahead of the US, China and Japan.

The SMMT also reported that the production of electric and hybrid vehicles increased in October, representing 40 per cent of all cars made in the month, a near-record high. The trade body said that the government and the industry are committing billions to transform the sector for a decarbonised future.

Mike Hawes, SMMT chief executive, said: ‘These figures, coming on the back of a series of significant investment announcements, signpost a bright 2024 for the UK automotive sector.’

Kemi Badenoch, Business and Trade Secretary, also welcomed the latest figures, saying: ‘This is yet more good news for our world-class automotive sector, off the back of the £2billion investment announced by Nissan in their Sunderland plant last Friday and the launch of our landmark Advanced Manufacturing Plan at the weekend.’

She added: ‘This Government is backing the UK car industry and these figures, combined with recent big investment wins, show that our plan for the sector is working.’

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