British car production saw a drop of 15.3% in October, with 77,484 vehicles manufactured, marking the eighth consecutive month of decline. This downturn was largely attributed to ongoing factory retooling for next-generation zero-emission vehicles, as reported by the Society of Motor Manufacturers and Traders (SMMT). Both domestic and export markets experienced setbacks, with output falling 4.7% and 17.6%, respectively.
The production of electrified vehicles – including battery electric, plug-in hybrid, and hybrid models -made up nearly a third of the total output at 24,719 units. However, this figure also represented a decline of 32.6% compared to the previous year. Since January, UK factories have produced 239,773 electrified vehicles, with 71.8% destined for export.
Exports to the EU, the largest market for UK cars, dropped by 34.6%, while shipments to the US almost doubled, rising by 96.2%, driven by the popularity of luxury and premium models. Despite a 5.3% year-to-date increase in production for the UK market, overall manufacturing output remains 10.8% lower than the previous year, with exports down 14.8%.
The decline continues due to weak demand for electric vehicles and rising operational costs, challenging the industry’s transition to greener technologies. Despite over £20 billion in investment announced last year to support EV production, the outlook for UK manufacturing remains less than ideal. Projections for 2024 and 2025 estimate production levels of 911,000 and 839,000 vehicles, respectively, significantly below pre-pandemic figures.
Industry leaders are calling for urgent government intervention to help aid competitiveness. Proposals include energy cost reductions, supportive market regulations, and trade agreements promoting free and fair commerce. Without these measures, UK car production risks falling below 750,000 units by 2030, threatening jobs and economic stability.
“These are deeply concerning times for the automotive industry, with massive investments in plants and new zero emission products under intense pressure. Slowdowns in the global market – especially for EVs – are impacting production output, with the situation in the UK particularly acute given we have arguably the toughest targets and most accelerated timeline but without the consumer incentives necessary to drive demand. The cost of stimulating that demand and complying with those targets is huge and, as we are seeing, unsustainable. Urgent action is therefore needed and we will work with government on its rapid review of the regulation and the development of an ambitious and comprehensive Industrial Strategy to assure our competitiveness.”
Mike Hawes, SMMT Chief Executive
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