UK (Commonwealth) _ August saw a -8.4% decline in the UK‘s car manufacturing output, according to new data released today by the Society of Motor Manufacturers and Traders (SMMT).
August typically sees low output owing to summer shutdowns; therefore, the reduction was only 3,781 units lower than the 41,271 new cars that were produced.
Following the £24 billion in UK automotive manufacturing investment announced last year, manufacturers are winding down production of important models and retooling for new models, mostly electric. This reduction is consistent with the pattern observed throughout the year.
Production of electrified vehicles (battery electric, plug-in hybrid, and hybrid) decreased by -25.9% during the month, bringing the output share down to 29.6%. Longer-term, however, this reduction is anticipated to be reversed as new models are released.
Although this impact is heightened by the limited overall output volume for the month and the fact that the majority of UK production is for export, production for the local market looked to decrease considerably, by -19.8%.
Exports, on the other hand, decreased by a very small 5.9%, mostly as a result of models that were designed for EU markets. With 27 Member States accounting for 49.8% of all exports, they continue to be by far the largest destination for exports. China (6.5%), Japan (5.1%), Australia (4.4%), and the United States (17.0%) comprised With increases in both the American and Japanese markets, the remaining top five export destinations for UK auto manufacture were the US (17.0%), China (6.5%), Japan (5.1%), and Australia (4.4%).
For the sixth consecutive month, fewer cars were made in the UK as firms shifted their focus to making electric vehicles.
August saw an 8.4% decrease in new car production, according to industry statistics. Factories are ceasing production of important models and retooling for new, mostly electric, production, which is the cause of the downward trend.
The fall, according to the Society of Motor Manufacturers and Traders, is also because August is “typically a low output month due to summer shutdowns.”
Automobiles were produced, representing an 8.4% shift from August 2023.
In August, domestic production fell by -19.8% while exports fell by a slightly smaller -5.9%.
As the industry continues to shift to producing electric cars, UK car manufacturing is down 8.5% year to date at 522,823 units. Despite August’s domestic dip, the UK market’s output has increased by 12.3% so far this year, while exports have decreased by 13.6%.
In the previous year, the automotive industry was promised £24 billion in investments, which the SMMT claimed placed the UK car industry ‘back in the game’.
Tata, Jaguar Land Rover, Nissan, BMW, and Nissan alone have made statements, with Nissan spending £2 billion to produce two electric vehicles at its plant in Sunderland.
Production of electrified vehicles (battery electric, plug-in hybrid, and hybrid) decreased by -25.9% during the month, bringing the output share down to 29.6%.
However, as new models hit the market, this is anticipated to change in the long run. Models range from the cheapest new EV, the Dacia Spring, to the new seven-seater Peugeot 5008 or the luxury Porsche Macan EV, and they are arriving almost continuously.
The car industry received promises of £24 billion in investments last year.
The chief executive of SMMT, Mike Hawes, stated: “August was always going to be a slower month for output because of the customary summer shutdowns and companies preparing to convert to new models, according to SMMT CEO Mike Hawes. Nonetheless, the industry is still hopeful about a rebound in growth, as seen by the record investment levels disclosed in the previous year.”
In the next Autumn Budget, Hawes urged the Chancellor to “demonstrate that it backs auto” and to present a strategy that includes ideas for more affordable, sustainable energy, investing in skills, and developing healthy markets both domestically and internationally.
In order to “allow the industry to drive economic growth in every part of the country” and “maintain its competitiveness,” he continued, the UK needed this investment.
Despite August’s domestic fall, UK vehicle manufacturing is down -8.5% year to date at 522,823 units, and output for the UK market is up 12.3%.
When over fifty percent of all UK car and van production is slated to be zero emissions, output is predicted to rebound to slightly over 1.1 million units by 2028 and reach 1.167 million by the end of the decade.
