The UK car manufacturing industry experienced a significant decline in output in November, marking the ninth consecutive month of decrease, as reported by the Society of Motor Manufacturers and Traders (SMMT). Production dropped by 30.1% compared to the previous year, with 64,216 cars manufactured in Britain during the month. Several factors contributed to this decline, including strategic product decisions, challenges in key global markets, calendar timing, and a high base for comparison from the previous year.
All major car manufacturers in the UK witnessed a decrease in production in November, making it the worst performance for the month since 1980. Both domestic and export markets saw sharp declines, with output falling by 56.7% and 21.3% respectively.
Despite the overall decline, the production of battery electric, plug-in hybrid, and hybrid electric vehicles accounted for almost a third (29.8%) of the output, with 19,165 units produced in the month. However, this represented a 45.5% decrease in volume. From January to November, UK car manufacturers produced over a quarter of a million electrified vehicles, down by 19.7% compared to the same period in 2023 due to model transitions at major plants.
In the year-to-date figures, UK car output has fallen by 12.9% to 734,562 units, which is 108,787 fewer than the same period in 2023 and nearly half a million units lower than 2019 volumes.
The restructuring in the global automotive industry, including plant closures, is a contributing factor to the decline in UK car production. The transition from internal combustion engine (ICE) to electric vehicle (EV) production has also impacted the industry. The SMMT emphasized the need for the UK government to introduce incentives for private consumers, enhance infrastructure development, and expedite an industrial and trade strategy for the EV sector.
The SMMT also called for urgent changes to the UK’s Zero Emission Vehicle (ZEV) Mandate, which could impose significant fines on UK car manufacturers for potentially missing BEV market share targets in 2024. The association stressed the importance of a vibrant local market to sustain local production.
Mike Hawes, Chief Executive of the SMMT, expressed concerns about the industry’s challenges and urged the government to support consumers in the transition, accelerate the Industrial Strategy for advanced manufacturing, and review market regulations to alleviate pressure on the sector.
Overall, the UK car manufacturing sector faces ongoing challenges amidst the global shift towards electrification and the need for government support to maintain competitiveness and sustainability.
