FX.co ★ UK Car Production Surges 14.6% On Domestic Demand: SMMT

The United Kingdom's car production increased for the sixth consecutive month in February. This growth has been attributed to the strong demand in the local market, according to data from the Society of Motor Manufacturers and Traders (SMMT), released on Thursday.

In February, overall car production rose 14.6 percent, compared to the previous year, marking the most substantial February performance since 2021. A total of 79,997 units were manufactured during the month.

In the same month, domestic market demand surged by 58.0 percent to 20,658 units, and demand in foreign markets saw a 4.6 percent increase. The EU continued to be the largest global market for the UK car industry, accounting for 59.9 percent of exports, while the US followed with 14.8 percent.

The data also demonstrated a continued upwards trend in the production of electrified vehicles, which rose by 6.0 percent to 29,038 units in February.

For the year's initial two months, UK car production experienced a 17.8 percent rise to 162,904 units. This has been the most positive start to a year since 2021.

However, as Mike Hawes, SMMT Chief Executive, pointed out, the UK industry is in a competitive environment, with global competitors vying to secure new models and technologies. Therefore, it's crucial for all political parties to maintain a commitment to our industrial competitiveness, especially in this probable election year.