9:02 am, September 26, 2024
Car production in the UK fell by 8.4% last month, according to new figures published today by the SMMT.
The industry body cited summer shutdowns as the main reason for the decline, with output sliding to 41,271 vehicles in August – 3,781 fewer than the same point last year.
It followed July’s 14.4% year-on-year decline to 65,478 units, on top of June’s 26.6% fall to 62,231 units and May’s 11.9% dip to 69,652 vehicles.
The SMMT says that the months of decreased output can also be put down to factories retooling for new – primarily electric – model production, following the £24bn of UK automotive manufacturing investment announced last year.
Despite this, electrified – battery-electric, plug-in hybrid and hybrid – vehicle manufacturing saw a drop in volume of 25.9% in August, leading to a fall in share of output from 37.5% in July to 29.6% the following month.
In more news, which could have a worrying knock-on effect on UK dealers, production for the domestic market declined sharply, by 19.8%.
By comparison, exports fell by a much more modest 5.9%, largely due to changeovers of models built for EU, which remains by far the biggest export destination.
The bloc made up nearly half (49.8%) of all exports with the US (17.0%), China (6.5%), Japan (5.1%) and Australia (4.4%) taking the other top five spots.
So far this year, UK car production is down 8.5% at 522,823 units and output for the UK market is up 12.3% despite August’s domestic decline.
Mike Hawes, SMMT chief executive, said, ‘With the traditional summer shutdowns and factories prepping to switch to new models, August was always going to be a quieter month for output.
‘The sector remains optimistic about a return to growth, however, with record levels of investment announced last year.
‘Realising those investments and securing more depends on the UK industry maintaining its competitiveness so we look forward both to the Chancellor’s Autumn budget and the government’s proposed Industrial Strategy as critical opportunities to demonstrate that it backs auto.
‘Labour’s Automotive Sector Plan, launched at their party conference a year ago, should be the blueprint with its proposals for cheaper, green energy, skills investment and the cultivation of healthy markets here and abroad.
‘These are the measures that would enable the industry to drive economic growth in every part of the country.’
Main image credit: Owen Humphreys/PA Wire
