UK Automotive Industry Experiences Significant Output Decline

The United Kingdom’s car manufacturing output decreased by 14.4 percent in July compared to the same month last year due to temporary supply issues and model transitions at local factories.

According to the latest statistics from the Society of Motor Manufacturers and Traders (SMMT), the total car production in July dropped to 65,478 units, a decline from 76,451 units produced in July 2022.

Output for electrified vehicles, which includes battery electric, plug-in hybrid, and hybrid cars, saw a notable decrease of 18.6 percent in overall volume. In terms of total car production, the percentage of EVs produced fell to 37.5 percent from 39.5 percent recorded in July 2023.

Mike Hawes, the SMMT’s chief executive, commented, “After robust growth last year, a certain level of output adjustment was anticipated. The industry is likely to experience continued volatility as it adapts to the transition towards zero-emission vehicle production.”

Hawes expressed optimism that production growth would return as investments in new model development start to materialize. He emphasized the need for a combination of healthy market conditions, affordable green energy, and equitable trade agreements that ensure easier access for British-manufactured vehicles to international markets.

UK car factories are currently facing a drop in production while shifting their focus towards electric vehicle manufacturing.

Over 80 percent of UK-produced vehicles are exported, with 51.3 percent directed to the European Union, followed by 17.6 percent to the United States and 5.5 percent to Turkey. However, the total number of cars produced for export fell to 52,963, marking a 16.3 percent decrease from the previous year.

While export demand declined significantly, domestic production performed relatively better, with a decrease of 5.1 percent to 12,515 units—a reduction of just 672 units from July last year.

For the year so far, total car production has decreased by 8.6 percent, totaling 481,552 units compared to 526,619 cars manufactured during the first seven months of 2023. Despite the drop in production quantity, the total output value for the year remains stable at over £20 billion in factory gate prices.

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