Electric vehicle output at UK car plants rocketed 49.9% in January as carmakers accelerated the shift to electrified car production.

Battery electric, plug-in hybrid and hybrid electric vehicles accounted for more than four in every 10 (41.3%) cars made in January, a near record monthly share

A total of 28,329 battery electric, plug-in hybrid and hybrid electric vehicles rolled off factory lines last month, according to new figures from the Society of Motor Manufacturers and Traders (SMMT).

That’s more than four in every 10 (41.3%) cars made in January, a near record monthly share.

The SMMT said it provided further evidence of the UK’s capability in making such important models, most of which (77.0%) are exported to meet global demand.

The rise came as overall UK car production plateaued, down 0.3% to 68,575 units. The loss, equivalent to just 215 fewer cars, was driven chiefly by structural changes but with supply chain shortages still hitting some manufacturers.

Production for the UK rose 5.6% to 12,196 units, while exports declined by 1.5%, largely due to the suspension of shipments to Russia, which accounted for 83.6% of the loss. In total, some 56,379 cars – more than eight in 10 of all those produced – were destined for overseas markets, with over half of these (56.6%) for the EU, with next most important global destinations the US (9.3%), China (8.8%), Japan (4.4%) and Australia (3.3%).

Recent weeks have brought a slew of negative headlines for the UK auto sector, including Britishvolt calling in the administrators, the latest restructure by struggling electric vehicle start-up Arrival and Ford’s announcement that it will cut a fifth of its UK workforce.

Pressure is also mounting on the Government to step up its involvement amid criticism of its lack of industrial strategy and its inability to compete with attractive subsidy packages offered in the US and the EU. Nissan told the BBC that the UK faced a challenge to remain competitive with other car-making countries and warned the “economics have to work” for the company to make new electric models of its Juke and Qashqai cars in the UK.

And Stellantis, parent group of Vauxhall, has said the future of Britain’s car industry will be under threat unless the country urgently builds battery factories to feed its car plants.

CEO Carlos Tavares said: “I fear that if you don’t have the #battery supply in the UK, for the UK, the market will be in trouble.”

The SMMT has also renewed its calls for investment.

Mike Hawes, chief executive, said: “Automotive manufacturing can drive long-term growth for the low carbon economy but the sector needs competitive conditions to attract investment. Recent global developments, however, suggest increasing protectionism which, if not challenged or mitigated, could put the UK at a disadvantage. To deliver a wholesale industrial transformation we need a competitive framework and a pitch that promotes advanced vehicle manufacturing internationally. We now look to the forthcoming Budget for the necessary measures that will enable the automotive sector to deliver its undoubted potential.”

Richard Peberdy, UK head of automotive for KPMG, commented: “At present the UK is proving a less attractive proposition for new vehicle manufacturing facilities due to relatively high labour and energy costs, and access to raw materials and chemicals.

“Some countries, such as the USA in the form of its Inflation Reduction Act, have developed bold policy moves to encourage inward investment in next-generation manufacturing facilities for the electric vehicle supply chain – and these are proving effective at securing big bet investments from car makers. Whilst the UK is a global leader in high value skills and research, in a globally competitive environment the government and the local industry need to do more to show that it can be a viable manufacturing base for battery and electric vehicle manufacturing at scale.”

The latest independent forecast for UK car output predicts a 9% rise to 842,200 cars this year, driven by the growth in electrified vehicle production. By 2025 car and light van production volumes are predicted to exceed one million vehicles.