Car manufacturing drops a third in worst November since 1980
UK car production fell by 30.1% in November, marking the ninth consecutive month of decline and the worst performance for the month since 1980.
With UK car makers retooling factories to make EVs, all major manufacturers experienced declines
A total of 64,216 cars rolled off factory lines, 27,711 fewer than in November last year, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).
The trade body said the drop was due to a combination of factors, including strategic product decisions, weakness in key global markets, calendarisation and the fact that production grew significantly in November 2023 as Covid-related supply chain challenges faded.
With UK car makers retooling factories to make electric vehicles, all major manufacturers experienced declines.
Output for both domestic and export markets fell dramatically, down 56.7% and 21.3% respectively. More than eight in 10 cars shipped overseas and more than half of these (52.3%) headed to the EU.
Electric cars – pure battery, plug-in hybrid and hybrid – accounted for almost a third (29.8%) of output, despite volumes declining by 45.5% to 19,165 units.
For the year to date, UK car output has fallen by 12.9% to 734,562 units – 108,787 fewer than the same period in 2023 and almost half a million short of 2019 volumes.
On the EV side, UK carmakers produced more than a quarter of a million electrified vehicles from January to November; down 19.7% on the same period in 2023 due primarily to model switchovers taking place at major plants.
The SMMT stressed that UK automotive manufacturing is well placed to take advantage of the shift to EVs, but highlighted the downturn in consumer confidence across both the UK and key overseas markets and the “lacklustre” new car registrations in the UK and Europe (up just 0.4% in the first 11 months of the year).
With the domestic EV market not growing as fast as expected, the industry body is calling on the UK government to act quickly by introducing incentives for private consumers, boosting infrastructure rollout and fast tracking an industrial and trade strategy that delivers competitive conditions. These include cheaper low-carbon energy, new skills and measures to attract further investment.
The SMMT also urged the Government to publish its consultation on the changes to the ZEV mandate regulation.
Mike Hawes, SMMT chief executive, said: “Government can help by supporting consumers in the transition, fast tracking its Industrial Strategy for advanced manufacturing and, most urgently, reviewing the market regulation which is putting enormous strain on the sector.”
Society of Motor Manufactures and Traders (SMMT)UK car production