7:08 am, August 29, 2024
Car production in the UK fell by 14.4% last month, according to new figures published today by the SMMT.
The industry body cited model changeovers and temporary supply chain challenges as the main factors causing the decline in output to 65,478 vehicles in July compared with the same month last year.
It followed June’s 26.6% year-on-year decline to 62,231 units, on top of May’s 11.9% fall to 69,652 vehicles and April’s 7% drop to 61,820 cars.
But although it suffered an 18.6% fall in volume, electrified – battery-electric, plug-in hybrid and hybrid – vehicle manufacturing kept a relatively stable 37.5% share of output versus 39.5% in July 2023.
Production for the UK market fell slightly, by 5.1%, although in volume terms that was just 672 fewer units.
More than four in five (80.9%) cars produced in July were destined for overseas customers, with the five largest markets by volume encompassing the EU (51.3% of exports), US (17.6%), China (8.6%), Turkey (5.5%) and Japan (3.1%).
Total export volumes for the month fell by 16.3%, though.
Domestic production for the year to date is up by 14.8% while export volumes are down by 14.3%.
However, the total output was still worth more than £20bn at factory gate prices, said the SMMT, and was unchanged on the same period last year.
That was based on an average factory gate price of £41,800 this year, compared with £38,200 for 2023 and adjusted for inflation.
SMMT chief executive Mike Hawes said: ‘Following significant growth last year, some readjustment in output was to be expected.
‘Indeed, an ongoing degree of volatility is likely as the industry restructures to transition to zero-emission vehicle production.’
He added: ‘As the billions already committed to new models start to deliver a return, volume growth will resume, providing we seize every opportunity to enhance our global competitiveness.
‘We need investment in skills, healthy markets, cheaper green energy and fair trade deals that help British-built vehicles reach international customers more easily, all of which should be wrapped in an over-arching industrial strategy that ensures automotive continues to be a key driver of economic growth.’
Main image credit: Owen Humphreys/PA Wire
