UK car production decline in line with expectations for September

UK car production decline in line with expectations for September

UK car production output declined by -20.6% in September, according to the Society of Motor Manufacturers and Traders (SMMT), as 70,039 units rolled off production lines.

The decline was expected as factories wind down production of current models and turn their attention to zero emission vehicles. Around 21,309 electrified models were made in September, representing 30.4% of all cars produced despite an overall volume decline of -37.0% against the same month last year.

Mike Hawes, SMMT Chief Executive, said: “As UK Automotive undergoes its most radical transformation in more than a century, short term production declines were always anticipated, and they represent a temporary adjustment in exchange for long term growth.

“Following record investment announcements last year, the sector is ready to build on its position as the UK’s largest exporter of manufactured products.

“To do so, we need the necessary industrial and market conditions, and the forthcoming Budget and Industrial Strategy must put in place ambitious measures to bolster business confidence, attract investment and secure competitiveness.”

Output for domestic and export markets was down -20.8% to 18,614 units and -20.6% to 51,425 units respectively.

A 6.5% rise in output for the UK was not enough to offset a -14.4% fall in overseas shipments, overall UK car production is down -10.2% to 592,862 units since January. Growth is expected to return with new models.

Despite a drop in car production this year, the sector remains Britain’s largest exporter of manufactured products, increasing its share of these exports to 13.9% in H1 2024. The value of these exports remains high, driven by global demand for UK-made EVs, which are worth roughly one and a half times more than ICE models.

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