UK car production fell 8.4% year on year last month, but industry chiefs are confident that trend will be reversed in the longer term due to significant incoming investment – while calling on the new government to ensure regulations are in place to allow this.
August is traditionally one of the quietest months for car production because of summer shutdowns for staff holiday and to allow maintenance work on the factory facilities. As a result, 42,271 cars were built in the UK last month.
That number is just 3781 fewer units than in August 2023, and the 8.4% decline is in line with production levels so far this year. In total, 522,823 cars have been produced in the UK in 2024, down 8.5% on the first eight months of 2023.
The decline is not unexpected, with many UK manufacturers currently winding up production of key vehicles ahead of retooling for new models – many of which will be electric. In total, £24 billion of investment in the UK automotive industry was announced last year, including significant investment to produce three new EVs at Nissan’s Sunderland plant.
Of the 41,271 cars produced in the UK in August, 6421 were destined for the domestic market, a year-on-year dip of 19.8%. But that figure was amplified by the small output for the month, and overall the number of UK-built cars sold domestically in 2024 remains up, year on year.
The 34,850 cars built for export marked an annual decline of just 5.9%. Of those, virtually half (49.8%) were exported to the EU, with the US, China and Japan the next biggest markets.
Mikes Hawes, head of industry body the Society of Motor Manufacturers and Traders (SMMT), said “the sector remains optimistic about a return to growth” due to the incoming investment.
But he added: “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.”
Add your comment