UK car production fell by 7.6% in the first six months of the year, the SMMT said today.
The industry body said the decline was ‘expected’ because of car makers overhauling lines to make electrified models.
Factories turned out 416,074 new cars between January and June – 34,094 fewer than over the same period in 2023.
The drop in production of battery-electric, plug-in hybrid and hybrid cars to 157,224 units matched the overall trend at 7.6%.
Just over 106,157 cars were built for the UK – a 17.7% year-on-year rise – but there was a 13.9% fall in production for overseas buyers to 309,917 units.
The EU continued to take the majority of car exports at 55.4%, with the US, China, Turkey and Australia making up the rest of the top five export locations, accounting for a combined 29.4% of all overseas orders.
Japan, Canada, South Korea, the United Arab Emirates and Switzerland completed the top 10.
Meanwhile, car production for June was down by 26.6% at 62,231 units.
The latest independent outlook shows total car and light van production this year is expected to reach around 910,000 units, which would be a 9.3% decrease versus 2023.
SMMT chief executive Mike Hawes said: ‘The UK auto industry is moving at pace to build the next generation of electric vehicles – a transition that can be a growth engine for the entire British economy.
‘The new government’s commitments to gigafactories, a decarbonised energy supply and a faster planning system will help boost our competitiveness and sustain employment in a sector that delivers well-paid, skilled jobs nationwide.
‘Amid fierce global competition, however, industry and government must work quickly to deliver those commitments, creating an industrial strategy that enables the growth the economy craves.’
Hawes said the industry entered 2024 with a ‘degree of optimism’ thanks to investment commitments made by manufacturers last year that totalled £24m.
He said the transition from building petrol and diesel-powered new cars to electric models ‘was always going to be difficult and volatile’.
Hawes attributed the overall 7.6% decline to manufacturers such as Mini, Nissan and Jaguar Land Rover making ‘significant model changes’.