UK Car Production

UK car production saw a drop of 8.4% in August, according to recent data from the Society of Motor Manufacturers and Traders (SMMT). Traditionally, August is a low-production month anyway as a result of summer shutdowns, and this year’s decrease only amounted to 3,781 fewer vehicles, with 41,271 cars coming off the assembly lines.

This decline aligns with the ongoing trend seen throughout the year, as factories reduce the output of existing models and prepare to produce new ones, particularly electric vehicles (EVs). This shift follows last year’s announcement of £24 billion in investment into the UK’s automotive industry.

Production of electrified vehicles, including battery electric, plug-in hybrid, and hybrid models, took a big hit, dropping by 25.9%. This brought the share of electrified vehicles to 29.6% of total output. However, the fall is expected to be temporary as manufacturers transition to new models.

Domestic production experienced a steep decline of 19.8%. However, it’s worth noting that this figure is amplified by the typically low production volume in August, with most UK-made cars destined for export markets.

In comparison, exports decreased by 5.9%, largely driven by changes to models destined for the EU. The European Union remains the largest export market for UK-made cars, accounting for nearly half (49.8%) of exports. Other key markets include the US (17%), China (6.5%), Japan (5.1%), and Australia (4.4%), with notable growth in both the US and Japanese markets.

Year-to-date figures reveal an overall decline in UK car production of 8.5%, with a total of 522,823 units produced. Despite August’s domestic downturn, production for the UK market is up 12.3% for the year.