UK car manufacturing dropped 9.7% in August as carmakers upgraded plants for the next generation of electric vehicles.

While overall car production dropped in August, output of electrified cars was up for the 14th month running

The decline follows six consecutive months of growth, with a total of 45,052 models rolling off factory lines last month, according to the Society of Motor Manufacturers and Traders (SMMT). Production for the home market was down 25.2%, as exports also declined by 5.5%.

August is typically the smallest volume month of the year due to summer shutdowns, which are often variable – but last month’s output was also affected by extended production pauses at some plants for planned maintenance and upgrades as carmakers gear up to produce the next generation of electric vehicles.

Production of electrified vehicles continued to soar however – up 2.8% to 16,511 units in the 14th consecutive monthly rise. Such greener vehicles also accounted for nearly two in five (36.6%) of all cars produced. Year to date, production of electrified models is up 64% to 216,922 units.

The SMMT said August’s drop was not a cause for concern.

Mike Hawes, chief executive, commented: “With car manufacturers taking advantage of the summer holiday season to upgrade their plants, this is part of an ongoing commitment to deliver the next generation of electric vehicles, with a record number of these models already being made.”

Year-to-date figures for overall production also show the sector continued its streak of double-digit gains – for the first eight months of 2023, output was up 11.8% to 571,671 units. Both home and export volumes rose, by 2.5% and 14.4% respectively.

But the SMMT warned that the industry urgently needs clarity on two crucial areas.

Hawes continued: “We need business certainty, not least a UK–EU agreement to delay tougher rules of origin that would damage the competitiveness of electric vehicles in both the European and British markets and concrete details from the UK government on the regulation compelling the sale of EVs in Britain. Both are due to commence in less than 100 days and are essential to business planning and investment for 2024 and beyond.”