According to new data released by the Society of Motor Manufacturers and Traders (SMMT), UK car production experienced an 8.4% decrease in August. This month typically sees lower output due to seasonal factory shutdowns, with production totaling 41,271 new cars—equivalent to 3,781 fewer vehicles compared to last year.
The ongoing decline follows a trend observed throughout the year as manufacturers reduce production of existing models to prepare for new ones, particularly electric vehicles, following a £24 billion investment in the UK automotive sector announced last year.
Production of electrified vehicles—including battery electric, plug-in hybrid, and hybrid models—fell by 25.9% for the month, reducing their share of overall output to 29.6%. However, this dip is anticipated to be temporary as new models are introduced.
Domestically, production saw a significant decline of 19.8%. This drop is magnified by the relatively low total output for the month and the fact that a large portion of UK manufactured cars are intended for export.
In contrast, exports decreased modestly by 5.9%, primarily due to model transitions for European markets. The 27 EU Member States remain the largest destination for UK exports, accounting for 49.8% of total shipments. Other major export markets include the US (17.0%), China (6.5%), Japan (5.1%), and Australia (4.4%), with both the American and Japanese markets showing growth.
Year-to-date figures indicate that UK car production is down 8.5%, totaling 522,823 units. Notably, output for the domestic market has increased by 12.3% despite the decline observed in August.
Mike Hawes, SMMT Chief Executive, stated,
August was anticipated to be a slower month for production due to traditional summer shutdowns and the transition to new models. Nevertheless, the sector remains hopeful about a rebound, supported by the substantial investments announced last year.
Realizing these investments and attracting further support hinges on the UK automotive industry’s ability to stay competitive. We are looking forward to the Chancellor’s Autumn budget and the government’s proposed Industrial Strategy as crucial opportunities to affirm its commitment to the automotive sector. Labour’s Automotive Sector Plan, introduced at their Party Conference last year, should serve as a blueprint with its recommendations for affordable, green energy, skills development, and fostering robust markets both domestically and internationally. These initiatives are essential for driving economic growth across the country.
SOURCE: SMMT
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