UK car production decline 10% in August

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【Summary】UK car production declined by nearly 10% in August, ending six months of growth. The drop was primarily due to scheduled maintenance and upgrades for the production of electric vehicles. Domestic production decreased by 25% and exports dropped by 5.5%, with shipments to the US, China, and Japan seeing a decline. The EU remained the largest market for UK car exports. However, the year-to-date production increased by 11.8%, and the production of electrified vehicles rose by 2.

FutureCar Staff Sep 28, 2023 9:20 AM PT

UK car production experienced a significant decline of nearly 10 per cent in August, according to the Society of Motor Manufacturers and Traders (SMMT). This drop put an end to six consecutive months of growth, with a total of 45,052 cars being produced last month. However, the SMMT reassures that this decline is not a cause for concern.

August is typically a month with the fewest number of cars being built due to summer shutdowns. However, last month's decline was also influenced by extended production pauses at some plants for planned maintenance and upgrades as car manufacturers prepare for the production of the next generation of electric vehicles.

Production for the domestic market saw a significant decline of a quarter, while output for export dropped by 5.5 per cent. This decline in exports was largely driven by a decrease in shipments to the US, China, and Japan. The European Union remained the UK's largest global market, with almost six in 10 exports heading for the bloc.

Despite the decline in August, overall car production in the year to date has increased by 11.8 per cent to reach 571,671 units. Additionally, the production of electrified vehicles saw a rise of 2.8 per cent in August, representing nearly two in five of all cars made. This is equivalent to 16,511 units. Since January, car manufacturers have built 216,922 of these vehicles, which is 84,310 more than last year, highlighting the UK's capability to be a leader in zero-emission production.

Mike Hawes, the SMMT chief executive, emphasizes that the decline in UK car output during August, which is typically the smallest and most variable volume month, is not a cause for concern. He explains that car manufacturers took advantage of the summer holiday season to upgrade their plants, as part of their commitment to delivering the next generation of electric vehicles. Hawes also reiterates the car industry's desire to delay the implementation of planned tougher rules of origin, stating that business certainty is needed to secure future investment.

In less than 100 days, tougher rules of origin and regulations compelling the sale of electric vehicles in Britain are set to commence. The SMMT chief emphasizes the importance of concrete details from the UK government regarding these regulations, as they are essential for business planning and investment for 2024 and beyond.