The UK car production saw a positive trend in July, with a 5.6% increase to 69,127 units, as reported by the Society of Motor Manufacturers and Traders (SMMT). However, commercial vehicle output experienced a sharp decline of 81.1%, attributed to plant restructuring and a strong performance in the previous year. When considering both cars and commercial vehicles, total vehicle production decreased by 10.8% to 72,006 units for the month.
Car production for both domestic and export markets showed improvement, with a 13.6% increase for the domestic market and a 3.7% increase for exports. The majority of the output (79.4%) was destined for overseas markets, with the EU being the primary destination for UK car exports at 45.6% share. The US, China, Turkey, and Japan followed as significant export markets. Despite a decline in exports to the EU and China, there was growth in shipments to Turkey and Japan. The US remained the largest single national market for British-built cars, highlighting the significance of the UK-US trade deal.
In the year to date, total UK vehicle output has decreased by 11.7%, with almost half a million units (489,238) produced. Mike Hawes, SMMT Chief Executive, emphasized the importance of government strategies translating into tangible actions to support the automotive sector. He highlighted the sector’s resilience amidst global competition and the need for sustained growth to create well-paid jobs and drive economic development across the UK.
The data for July also reflected the impact of the UK-US trade deal, which came into effect at the end of June. The top 10 export markets for British-built cars included Australia, Canada, Korea, the UAE, and Switzerland, accounting for 6% of all shipments in the month.
Overall, the automotive manufacturing sector continues to face challenges such as weak consumer confidence and volatile trade flows. However, the positive growth in car production signals the industry’s underlying strength. To maintain this momentum and unlock sustained growth, concrete actions from the government are essential to support the automotive sector’s contribution to the UK economy.
