Slump in UK car production is temporary, says SMMT

The UK’s output of new cars fell by 20.6% last month, according to figures from the Society of Motor Manufacturers and Traders (SMMT).

A total of 70,039 cars rolled out of UK factories in September – a significant drop from the 88,230 made here in the same month last year.

The SMMT attributed the fall to the end of production of various models as their factories are retooled for upcoming electric cars. Jaguar, for example, axed the Castle Bromwich-built F-Type, XE and XF in June as part of the brand’s transition to offering luxurious EVs.

Production of the new Mini Cooper in Oxford is still ramping up after the model was introduced earlier this year. The electric Cooper that was previously built there will be imported from China until the plant is upgraded in 2026.

Output of the Nissan Juke and Qashqai – the UK’s third and fourth best-selling cars last month – at Sunderland was paused as the duo recently received mid-life facelifts. And the electric Nissan Leaf has been axed to make way for the next-generation model, which is set to arrive in 2026.

A total of 21,309 electrified cars left UK factories during September, a 37.0% fall compared with the same month in 2023.

So far this year, 592,862 cars have been built across the UK, down by 10.2% on the 659,901 that had been made by the same point in 2023.

The SMMT said it expected the industry to return to growth once the next generation of models is released, with car and van production forecast to rise above one million units in 2027. 

UK-built cars due for replacement between now and 2027 include the Leaf, Juke, Qashqai, Range Rover Velar and Range Rover Evoque. Several brands will also introduce new models that are set to be built in the UK, such as Land Rover’s ‘baby’ Defender, the Lotus Type 135 and a trio of electric Jaguars.

However, the SMMT has called for greater support from the government in the Autumn Budget next Wednesday. 

It has previously said VAT should be halved on private purchases of electric cars to incentivise sales outside the fleet sector. Similarly, it has called for VAT on public charging to be slashed from 20% to 5%.

The SMMT has now also said the UK’s industrial strategy should put automotive “at its heart”. It has called for measures such seeking to reduce trade tariffs and customs costs, which would support the export market that accounts for almost three in four (73.4%) of the cars produced here.