UK car manufacturing output has fallen for the third month in a row as factories switch to electric models.

UK new car output fell 11.9% in May as factories continue to retool for EVs

Some 69,652 units were produced in May, down 11.9% as factories continue to retool for electric vehicles.

Output for the UK market actually rose by 9.7% to 17,754 units but did not offset a 17.4% decline in volumes for export, at 51,898 units, according to the new data from the Society of Motor Manufacturers and Traders (SMMT).

Despite the fall, almost three-quarters (74.5%) of all cars built in Britain were exported to global markets, with more than half (52.5%) going to the EU followed by the US (18.2%) and Turkey, which took 8.0% of shipments.

Output across the electrified vehicle spectrum (battery electric, plug-in hybrid and hybrid) remained robust, with 26,475 units leaving factory gates – representing almost two-fifths (38.0%) of all output, up by three percentages points compared with May 2023.

The share will continue to grow as manufacturers invest in greener product lines and technology to deliver Britain’s net zero ambitions – but as countries around the world continue to compete for such investment in their own industries, the SMMT says the UK must do all it can to position itself ahead of the competition.

Ahead of next week’s general election, the SMMT’s Vision 2035: Ready to Grow report sets out the priorities the sector wants to see from the next government.

It sets out five pledges that would back British manufacturing and see the sector deliver a cumulative value of more than £290bn of zero emission vehicles by the end of 2035, with UK factories producing more than a million battery electric cars and vans a year.

Mike Hawes, SMMT chief executive, said: “Massive change is underway in the UK’s car factories as manufacturers retool for new electric models. Amid strong international competition for green automotive investment, however, the UK needs to ensure it has the most attractive conditions for manufacturing businesses and a compelling offer for existing and new investors. Essential to this is a long-term industrial strategy, which encompasses all industry, all stakeholders and all of government in the pursuit of sustainable and green growth.”

Dunstan Power, director of electric vehicle charging design consultancy Versinetic, also commented on the latest manufacturing figures.

“A blip in production is inevitable as car manufacturers make the major transition to EVs and, although the UK has catching up to do versus countries like China, it is still better placed than many other nations. If anything, the shallowness of the blip is quite impressive and shows how well the manufacturers are adapting,” he remarked.