British car production falls for eighth month in a row
The Society of Motor Manufacturers and Traders said UK factories made 15.3% fewer cars in October this year than October 2023.
The number of cars produced in Britain has fallen for the eighth consecutive month, new figures from the Society of Motor Manufacturers and Traders (SMMT) show.
The trade association found UK factories made 15.3% fewer cars in October this year than October 2023.
It found 670,346 units were produced in the UK between January and October 2024, 10.8% lower than during the same period in 2023.
The drop was primarily due to a fall in exports, the SMMT said.
The number of cars produced for domestic use rose by 5.3% but fell by 14.8% for exports in the first 10 months of 2024 versus last year – equivalent to 89,095 fewer cars being shipped overseas.
The trade association said its new figures came as plants continued “their retooling to enable production of the next generation of zero emission vehicles”.
Around a third of the cars made in Britain in October this year were battery electric, plug-in hybrid and hybrid electric, it added.
“Slowdowns in the global market – especially for EVs (electric vehicles) – 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.”
The latest figures have “downgraded expectations for UK car and light van production”, the SMMT said.
The SMMT said: “Manufacturers announced more than £20 billion worth of investment last year to drive their transition to EV production, a massive sum demonstrating the industry’s commitment to net zero.
“If planned UK zero emission model launches stay on track and consumer demand improves, there is potential to get above one million units in 2028.
“If not, output would remain below one million units until 2030, and in a worst-case scenario drop to fewer than 750,000 should plants close and others have reduced model line-ups, which would have a devastating effect on the sector, jobs and economic growth.”
It added: “Ensuring the UK remains a globally competitive location for advanced vehicle manufacturing, therefore, requires an industrial and trade strategy that works for the sector and, in addition, a healthy domestic market, given car makers build close to where they sell.
“Government must work in partnership with industry to deliver market regulations that support consumers and industry, including measures to address the UK’s high cost of energy and the signing of trade deals built on free and fair trade.”
