UK carmakers in the slow lane as output falls

Car production in the UK fell by 14.4 per cent in July compared with a year ago as temporary supply constraints and model changeovers restricted output at British factories.
The latest figures from the Society of Motor Manufacturers and Traders (SMMT), the trade body, show that car production fell to 65,478 units last month, down from 76,451 in July last year.
Production of electrified vehicles, which covers battery electric, plug-in hybrid and hybrid models, declined by 18.6 per cent in volume. As a share of total car output, EV production fell to 37.5 per cent from 39.5 per cent in July 2023.
“Following significant growth last year, some readjustment in output was to be expected. Indeed, an ongoing degree of volatility is likely as the industry restructures to transition to zero-emission vehicle production,” Mike Hawes, the chief executive of the SMMT, said.
He said that volume growth for the sector will resume when the investment committed to developing new models begins to be felt. He added that the trade body was calling for “healthy markets, cheaper green energy, and fair trade deals that help British-built vehicles reach international customers more easily”.
British car factories are grappling with a slowdown in production as the industry continues to pivot towards manufacturing electric cars.
More than 80 per cent of cars produced in the UK were exported to global markets, with 51.3 per cent going to the European Union followed by America, on 17.6 per cent, while 5.5 per cent were shipped to Turkey. However, the total number of cars produced for export fell to 52,963, down 16.3 per cent from the same period last year.
While demand for exports recorded a double-digit decline, domestic production fared better, falling 5.1 per cent to 12,515 units — a decline of just 672 units compared to July last year.
Over the year to date, total car production has fallen by 8.6 per cent to 481,552, down from the 526,619 cars produced during the first seven months of 2023. Yet, production output value for the year to date has held steady at over £20 billion in factory gate prices.