UK car production decline 10%

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【Summary】UK car production fell by nearly 10% in August, ending six months of growth. However, the Society of Motor Manufacturers and Traders (SMMT) stated that this decline is not a cause for concern. The drop in production was largely due to extended production pauses for maintenance and upgrades as car makers prepare for the next generation of electric vehicles. Domestic production fell by 25% and exports dropped by 5.5%, with shipments to the US, China, and Japan declining.

FutureCar Staff Sep 28, 2023 6:22 AM PT

UK car production experienced a significant decline of nearly 10 per cent in August, marking the end of six consecutive months of growth, according to the Society of Motor Manufacturers and Traders (SMMT). A total of 45,052 cars were produced last month, reflecting a drop of 9.7 per cent. However, the SMMT reassured that this decline is not a cause for concern.

The decrease in production can be attributed to the usual summer shutdowns, which typically result in fewer cars being built in August. Additionally, some plants had extended production pauses for planned maintenance and upgrades in preparation for the production of the next generation of electric vehicles.

Domestic car production saw a decline of 25 per cent, while export output dropped by 5.5 per cent. This decrease was mainly driven by a decrease in shipments to the US, China, and Japan. The European Union remained the largest global market for the UK, with nearly six in 10 exports being sent to the bloc.

Despite the decline in August, overall car production in the year to date has increased by 11.8 per cent, reaching a total of 571,671 units. Furthermore, the production of electrified vehicles saw a rise of 2.8 per cent in August, accounting for almost two in five of all cars produced.

Since January, car manufacturers have built 216,922 of these vehicles, indicating the UK's capability to be a leader in zero-emission production. Mike Hawes, SMMT chief executive, emphasized that the decline in August is not a cause for concern, as it is a result of planned upgrades and the focus on electric vehicle production.

Hawes also expressed the car industry's desire to delay the implementation of tougher rules of origin, as it could negatively impact the competitiveness of electric vehicles in both the European and British markets. He called for business certainty and concrete details from the UK government regarding regulations compelling the sale of electric vehicles in Britain.