Auto production continues to decline as factories switch to electric vehicles
- Industry organization says slump expected due to usually quiet summer months
Car production fell for the sixth straight month as British factories increasingly switch to producing electric vehicles.
The latest industry figures show that new vehicle production fell by 8.4 percent in August.
This downward trend is due to factories scaling down production of key models and converting to new, mainly electric, production.
However, the Society of Motor Manufacturers and Traders has said the decline is also due to the fact that August is ‘normally a low production month due to summer closures’.
Chain reaction: Car production fell for sixth straight month as UK factories continue to switch to electric vehicle production, with the usual ‘summer slowdown’ also partly to blame
Year to date, UK car production is down 8.5 percent to 522,823 units
Vehicle production fell by 3,781 units in August as 41,271 new cars rolled off production lines — an 8.4 percent change from August 2023.
Production for the domestic market fell by -19.8 percent in August, while exports fell by a more modest -5.9 percent.
Over the past year, UK car production has fallen by 8.5 percent to 522,823 units, as the auto industry increasingly shifts to electric car production.
Output for the UK market has risen 12.3 per cent so far this year, despite a domestic decline in August, while exports fell 13.6 per cent.
Nissan confirms £2bn investment in UK, which will see it produce two new electric vehicles
New electric replacements for the Juke (right) and Qashqai (centre) are being built in Sunderland
The automotive sector received investment commitments worth £24bn last year, helping the UK car industry “get back on its feet”, according to the SMMT.
Jaguar Land Rover, Tata, Nissan and BMW all made announcements, with Nissan alone investing £2 billion to produce two electric cars at its Sunderland plant.
Production of electric cars (battery electric, plug-in hybrid and hybrid) fell by -25.9 percent in the month, bringing its share of production down to 29.6 percent.
But this is expected to change in the longer term as new models enter the market.
There is an almost constant influx, with models ranging from the cheapest new electric car – the Dacia Spring – to the new seven-seater Peugeot 5008 or the luxury Porsche Macan EV.
The automotive sector received £24 billion in investment commitments last year
Mike Hawes, CEO of SMMT, said: ‘With the traditional summer closures and factories preparing to switch to new models, August was always going to be a quieter month for output. However, the sector remains optimistic about a return to growth, with record levels of investment announced last year.’
Hawes called on the Chancellor to “demonstrate its commitment to the car sector” in the forthcoming autumn budget and to “set out a blueprint with proposals for cheaper, green energy, investment in skills and the development of healthy markets here and abroad”.
He added that the UK needs this investment to ‘maintain its competitiveness’ and ‘enable industry to drive economic growth in all parts of the country’.