From quiet factories to a roaring comeback, the UK automotive industry is shifting gears as evidenced by a powerful 2023, where car production surged 19.2% to over 775,000 units, electric vehicle output jumped 38%, and the sector’s total output value hit a staggering £82 billion.
Key Takeaways
- In 2023, UK car production reached 775,347 units, a 19.2% increase from 2022 driven by recovery post-chip shortages.
- UK commercial vehicle production in 2023 totaled 76,854 units, up 12.5% year-on-year.
- Engine production in the UK hit 144,136 units in 2023, reflecting a 7.8% rise.
- The UK automotive industry directly employs 142,000 people in manufacturing as of 2023.
- Total automotive employment including supply chain exceeds 800,000 jobs in 2023.
- 34,000 engineers work in UK automotive R&D sector in 2023.
- 2023 new car registrations in UK totaled 1,903,055 units, up 17.4%.
- Battery electric vehicles (BEVs) market share reached 16.5% of new sales in 2023.
- UK new van registrations hit 350,226 in 2023, +10.5%.
- UK car exports reached 794,000 units in 2023, up 25%.
- UK automotive exports value £43.1 billion in 2023.
- US was top destination for UK car exports with 210,000 units in 2023.
- UK automotive R&D spend £5.2 billion in 2022.
- £2.5 billion government investment in EV battery via AESC in 2023.
- JLR committed £15 billion to electrification by 2025.
UK car production rebounded strongly in 2023 due to recovering from supply chain issues.
Domestic Sales and Registrations
- 2023 new car registrations in UK totaled 1,903,055 units, up 17.4%.
- Battery electric vehicles (BEVs) market share reached 16.5% of new sales in 2023.
- UK new van registrations hit 350,226 in 2023, +10.5%.
- Q4 2023 car registrations: 503,100 units, highest Q4 since 2019.
- Ford Puma was UK's best-selling car with 44,585 units in 2023.
- Tesla Model Y sales: 29,960 units, top EV in UK 2023.
- Kia Sportage sold 35,108 units in 2023.
- New BEV registrations doubled to 381,970 in 2023.
- Plug-in hybrid (PHEV) registrations: 101,000 in 2023.
- Used car sales reached 7.6 million in 2023.
- Private buyer registrations up 22.6% to 1,255,000 cars in 2023.
- Fleet sales 648,000 cars, 34% of total in 2023.
- Diesel new car share fell to 12.4% in 2023.
- Petrol cars still 48.6% of registrations in 2023.
- January 2024 registrations: 137,817 cars, +14.5%.
- London EV adoption rate 25% of new cars in 2023.
- Supermarket sales segment dominated with 25% market share in 2023.
- Average new car price £39,800 in 2023.
- Used EV sales up 58% to 100,000 in 2023.
- Nissan Qashqai sales 32,675 units in 2023.
- Volkswagen Golf registered 27,000 units in 2023.
- 2023 bus registrations 8,200 units.
- Coach registrations 1,100 in 2023.
- Right-hand drive cars 99.9% of UK registrations.
- SUV/crossovers 49% of new car market in 2023.
- 4x4 registrations 105,000 in 2023.
Domestic Sales and Registrations Interpretation
The British motoring public, fueled by fleet renewals and private buyers wrestling with a £40,000 average price tag, collectively shrugged at diesel's demise and charged headlong into an SUV-dominated market where electric vehicles are no longer a curious sidebar but a serious 16.5% contender, proving that while the Ford Puma may rule the road, the future is increasingly plugged in.
Employment and Skills
- The UK automotive industry directly employs 142,000 people in manufacturing as of 2023.
- Total automotive employment including supply chain exceeds 800,000 jobs in 2023.
- 34,000 engineers work in UK automotive R&D sector in 2023.
- West Midlands hosts 40% of UK automotive manufacturing jobs, around 56,800 in 2023.
- Automotive sector female workforce participation rose to 22% in 2023 from 18% in 2019.
- 12,000 apprentices trained in automotive in 2022/23.
- UK lost 12,000 automotive jobs between 2019-2023 due to transition to EV.
- Nissan employs 6,000 at Sunderland, largest UK car plant.
- Jaguar Land Rover employs 38,000 UK staff in 2023.
- Supply chain employs 660,000 indirectly in automotive, 2023 data.
- 25% of automotive roles require digital skills like AI by 2025 projection.
- Automotive skills gap affects 70,000 unfilled positions in 2023.
- 5,000 new EV technician jobs created 2022-2023.
- UK automotive R&D staff numbers: 42,000 full-time equivalents in 2022.
- Oxfordshire automotive cluster employs 20,000 in 2023.
- 15% increase in graduate hires in automotive engineering 2023.
- Black Country automotive jobs: 25,000 direct in 2023.
- Automotive sector average salary £38,500 in 2023.
- 2,500 cybersecurity specialists needed in automotive by 2025.
- JLR Castle Bromwich employs 2,700 in 2023.
- UK trained 1,200 battery engineers via new programs in 2023.
- Automotive employment density highest in Sunderland at 1 in 20 jobs.
- 8% of workforce over 55, prompting succession planning in 2023.
- 30,000 manufacturing jobs supported by CV production.
- New entry-level roles in EV assembly: 4,000 created 2023.
- Automotive sector turnover per employee £450,000 in 2023.
Employment and Skills Interpretation
While the heart of the UK automotive industry beats strongly in the West Midlands, its lifeblood—a complex network of over 800,000 jobs—is furiously retooling its skills, from Sunderland to Oxfordshire, to navigate an electric revolution that is both creating new opportunities and exposing a critical shortage of 70,000 workers.
Exports and International Trade
- UK car exports reached 794,000 units in 2023, up 25%.
- UK automotive exports value £43.1 billion in 2023.
- US was top destination for UK car exports with 210,000 units in 2023.
- China imported 95,000 UK luxury vehicles in 2023.
- EU remains 52% of UK car export market in 2023.
- Commercial vehicle exports 103,000 units in 2023.
- Engine exports value £7.2 billion to 80 countries in 2023.
- UK-EU trade deficit in vehicles £11 billion in 2023.
- Post-Brexit, UK exports to EU down 15% cumulatively since 2019.
- 77% of UK-produced cars exported in 2023.
- Jaguar F-Pace exports to US: 25,000 units in 2023.
- Land Rover Defender top export model with 67,000 units.
- UK imported 1.49 million cars in 2023.
- Vehicle import value £38.5 billion in 2023.
- Germany supplied 25% of UK car imports in 2023.
- Turkey overtook Japan as top CV import source with 20,000 units.
- UK trade surplus in engines £3.1 billion in 2023.
- Exports to Australia up 40% post-trade deal in 2023.
- Middle East exports grew 18% to £2.5 billion in 2023.
- 2023 CV export growth 21.4% to key markets.
- UK exported EVs worth £5 billion in 2023.
- Components exports £20 billion annually average 2020-2023.
- Japan imports from UK doubled to 10,000 cars post-FTA.
- Canada CPTPP trade boosted exports by 12%.
Exports and International Trade Interpretation
The UK auto industry is a brilliant but conflicted machine, roaring back with global export wins and engine trade prowess while simultaneously hemorrhaging a colossal £11 billion to the EU and watching its own car market be quietly conquered by German imports.
Investment, R&D, and Sustainability
- UK automotive R&D spend £5.2 billion in 2022.
- £2.5 billion government investment in EV battery via AESC in 2023.
- JLR committed £15 billion to electrification by 2025.
- Nissan £1 billion Sunderland EV investment 2023.
- UK Automotive Council launched £1 billion transformation fund.
- R&D tax credits claimed £1.1 billion by automotive in 2022.
- 12% of GDP from automotive R&D intensity in sector.
- Faraday Institution invested £100 million in battery R&D 2018-2023.
- £500 million Advanced Propulsion Centre funding since 2015.
- Net zero roadmap targets 100% ZEV production by 2040.
- 40% CO2 reduction in manufacturing since 2015.
- £3 billion private investment in UK gigafactories by 2030.
- Tata £4 billion battery plant in Bridgwater announced 2023.
- Vauxhall £100 million Ellesmere Port EV conversion.
- 1,200 patents filed in UK automotive tech in 2023.
- Hydrogen fuel cell R&D £30 million government grant 2023.
- 25% recycled content mandated in new vehicles by 2030.
- UK led Europe in connected car R&D spend per capita.
- £200 million for autonomous vehicle trials 2023.
- Sector contributes £37 billion GVA annually 2023.
- 50% EV sales target by 2030 drives £10bn investment.
- Circular economy initiatives save £1bn in materials yearly.
- 300 MW renewable energy capacity in automotive sites 2023.
- AI integration R&D £500 million across firms 2023.
- Sustainability reporting mandatory for top 100 firms 2023.
- £1.5 billion in supply chain decarbonisation funding.
Investment, R&D, and Sustainability Interpretation
The numbers show an industry that has finally stopped just polishing its classic chrome and is now frantically, and with serious money, rewiring the entire engine under the bonnet while trying to keep the car on the road at seventy miles an hour.
Production and Output
- In 2023, UK car production reached 775,347 units, a 19.2% increase from 2022 driven by recovery post-chip shortages.
- UK commercial vehicle production in 2023 totaled 76,854 units, up 12.5% year-on-year.
- Engine production in the UK hit 144,136 units in 2023, reflecting a 7.8% rise.
- In Q4 2023, UK car manufacturing output was 219,600 vehicles, boosted by luxury models.
- UK produced 905,195 cars and CVs combined in 2023, highest since 2019.
- Jaguar Land Rover's Solihull plant produced over 100,000 Range Rovers in 2023.
- Nissan Sunderland factory output reached 430,000 vehicles in 2023.
- Toyota Burnaston plant manufactured 152,000 Corolla units in 2023.
- Mini Oxford plant produced 183,000 vehicles including electric models in 2023.
- UK electric vehicle production surged 38% to 151,403 units in 2023.
- Battery electric vehicle (BEV) output in UK was 108,098 units in 2023.
- UK car production for export was 677,000 units in 2023, 87% of total.
- In 2022, UK CV production fell 29.6% to 68,346 units due to supply issues.
- UK engine exports totaled 132,500 units in 2023.
- Vauxhall Ellesmere Port shifted to EV-only production with 50,000 units planned for 2024.
- UK automotive sector output value reached £82 billion in 2023.
- Over 170,000 cars were produced in West Midlands in 2023.
- Scotland's EV battery gigafactory at Greenport is set for 30 GWh capacity by 2026.
- UK truck production was 11,200 units in 2023.
- Bus and coach production hit 7,300 units in 2023.
- In January 2024, UK car production was 62,253 units, down 4.1%.
- February 2024 car production rose 15.3% to 76,539 units.
- UK produced 2.5 million components daily for automotive in 2023.
- 300,000th electric Mini produced at Oxford in 2023.
- UK aerospace-adjacent automotive parts production supports 50,000 jobs.
- Halewood plant produced 200,000 Range Rovers since 2022.
- UK van production up 24.7% to 56,000 in 2023.
- Total UK vehicle production 2023: 852,049 units.
- 2023 saw 40% of UK cars BEV or PHEV.
Production and Output Interpretation
The UK automotive industry, having navigated the chip crisis, roared back in 2023 with its best output since 2019, powered by a luxury and electric surge that saw nearly nine in ten cars built destined for export, proving the factory floor is still very much open for global business.
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