UK car output falls for eight consecutive month

In total, 77,484 units left factories, 14,037 fewer than in the same month last year, with plants continuing their retooling for the production of zero emission vehicles.

24,719 battery electric, plug-in hybrid and hybrid electric cars were made, representing 31.9 per cent of output, despite a volume decline of 32.6 per cent. Since January, UK car makers have produced 239,773 electrified vehicles, with 71.8 per cent of them exported.

Volumes for domestic and export markets declined in October, down 4.7 per cent and 17.6 per cent respectively, with eight-in-10 cars exported and over half of these (32,170 units) heading into the EU, although total volumes fell by 34.6 per cent. The UK’s luxury and premium models accounted for a 96.2 per cent surge in exports to the US. .

In the year to date, UK car production has dropped 10.8 per cent to 670,346 units, which SMMT attributes to falling exports. While production for the UK is up 5.3 per cent to 159,125 units, exports are down 14.8 per cent to 511,221 units, equivalent to 89,095 fewer cars being shipped overseas in the first ten months.

SMMT’s latest figures follow announcements by manufacturers and suppliers in the UK and Europe that reflect challenging market conditions and a slowdown in the transition to electrification. 

In a statement, Mike Hawes, SMMT chief executive, said: “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.”

SMMT warned yesterday (November 27, 2024) that auto makers are struggling to fulfil the 22 per cent EV sales target set by the zero emission vehicle (ZEV) mandate, which is predicted to cost Britain’s automotive industry £6bn this year. On the same day, Stellantis announced the proposed closure of its Luton van making plant, stating the decision was ‘made within the context of the UK’s ZEV Mandate’.