Boost to UK car industry as manufacturers make £24bn spending pledge in 2023

Thu 25 January 2024 View all news

The UK's car industry is reported to be 'back in the game' after car makers promised to invest £23.7bn in 2023. However, according to the trade body SMMT, the UK industry is still playing catch-up with rival nations after years of uncertainty and low investment.

The 2023 spending pledges included commitments to invest in new car plants and battery factories by the likes of Tata Motors, BMW and Nissan.

The UK produced just over 1.02mn vehicles in 2023, a 17 per cent year-on-year increase and the industry’s best year since 2019. Almost 80% of the vehicles produced in the UK were exported with more than 60 per cent of these going to the European Union.

The number of hybrid (HEV), plug-in hybrid (PHEV) and battery electric (BEV) vehicles produced in the UK increased by 48 per cent on 2022 to nearly 350,000 vehicles. 

Mike Hawes, SMMT Chief Executive, said:  "Receding supply chain challenges, new model introductions and a massive £23.7 billion of investment put UK vehicle production firmly back on track in 2023. Industry will now focus on the delivery of these commitments, transitioning the sector at pace to electric and scaling up the supply chain. With global competition as fierce as it has ever been and amid escalating geopolitical tensions, both government and industry must remain singularly focused on competitiveness, with all the jobs and growth this will bring. We are in a much better position than a year ago, but the challenges are unrelenting."

Image: Courtesy SMMT


< Back to news list