8:40 am, November 28, 2024
New car production fell for the eighth month in a row in October, according to new data from the SMMT.
The trade body’s latest figures show that 77,484 vehicles rolled off of British production lines in the tenth month of the year – a dip of 15.3%, compared to the same period in 2023.
It means that in the year-to-date, 670,346 units have been produced in the UK – 10.8% lower than this time last year.
Experts say the drop was primarily down to a fall in exports, an issue which could soon be brought into even sharper focus if Donald Trump follows through on his plans to introduce tariffs on good imported into the US.
The SMMT added that the current market for new cars is weak in the UK and European Union, with the EU market rising by just 0.7% between January and October this year.
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.
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.’
As a result of the slowdown, the SMMT has ‘downgraded expectations for UK car and light van production’.
British factories are now expected to turn out around 911,000 vehicles this year and 839,000 in 2025 – about a third less than the nearly 1.4 million cars and light vans made in 2019 before the Covid pandemic.
A spokesman for the body: ‘Manufacturers announced more than £20bn 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.
‘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.’
Reacting to the latest figures, Close Brothers Motor Finance admitted there are ‘worrying signs’ in current trends.
John Cassidy, director of sales at Close Brothers Motor Finance, said: ‘Year-on-year, car manufacturing in October continued to lag behind its equivalent for 2023, presenting worrying signs for the industry.
‘While it’s been pointed out that the current fallow period in production is due to factories switching to the production of new EV models, questions remain to be answered on the disparity between the Government’s mandates for EV production and actual consumer demand for them.
‘Instead of flooding the market with vehicles by increasing manufacturing output, the key to encouraging widespread EV adoption is for further investment to be directed towards improving the infrastructure required for widespread EV ownership.
‘This includes increasing the number of charging points.’
