UK automotive industry’s pandemic recovery continues to gather pace

Commenting on car production levels, Richard Peberdy, UK Head of Automotive, KPMG, said:

“Driven by increased demand for hybrid and electric vehicles, and a gradual easing of component shortages that have impacted recent years, UK car production saw pleasing growth in the first quarter of 2023.  But despite this upturn in production, overall volumes of vehicles produced remains lower than before the pandemic.

“Whilst it’s good news that production levels are again increasing, big questions still remain unanswered about how the UK will produce electric vehicles at much larger scale and what the nation’s strategy is to ensure that its car industry can compete with countries who have already developed bold policy moves to encourage inward investment in next generation manufacturing facilities.”

Commenting on new car registration numbers, Chris Knight, UK Automotive Partner for KPMG, said:

“The UK automotive sector’s recovery from the pandemic continues to gather pace, driven by a successful new plate month in March and the strongest first quarter of sales since 2019.  Super-minis and hybrids particularly pushed the industry forward.

“A strong order bank built up over previous months of shorter supply was evidenced by battery electric vehicle delivery reaching a record monthly high in March, as production has ramped up.  As more EVs become available on the market at all price points, we expect this trend to continue.  More must be done on ensuring that the electric charging infrastructure keeps pace with this growth in sales.”

Media contact:

Steven Reilly-Hii
Media Relations Manager, KPMG LLP
E: steven.reilly-hii@kpmg.co.uk 
T: 07510 376635.

About KPMG UK:

KPMG LLP, a UK limited liability partnership, operates from 20 offices across the UK with approximately 17,000 partners and staff. The UK firm recorded a revenue of £2.72 billion in the year ended 30 September 2022.  

KPMG is a global organization of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 143 countries and territories with more than 265,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.