UK car production declined by 20.6% (year-on-year) in September, according to the latest figures published by the Society of Motor Manufacturers and Traders (SMMT).
Go deeper with GlobalData
The SMMT said the scale of the decline is partly explained by comparison with a strong September 2023, which saw the best result for the month since 2020 (as the global chips shortage eased supply shortages).
The decrease was largely expected as factories wind down production of current models and retool lines for new battery electric vehicles (BEVs). Some 21,309 electrified models were made in September, representing 30.4% of all cars produced despite an overall volume decline of 37.0% against the same month last year.
Output for domestic and export markets saw almost identical rates of decline, down 20.8% to 18,614 units and 20.6% to 51,425 units respectively. Continuing the trend as Britain’s leading market for finished vehicles, the EU took more than half (52.2%) of exports at 26,825 units, although volumes fell 28.6%. Exports to China, one of the top three export destinations, fell too, down 23.1% to 3,673 units and taking 7.1% export share, while those to the US rose 24.6% to 8,210 units, representing 16.0% of September’s exports.
In the year to date, a 6.5% rise in output for the UK market was not enough to offset a 14.4% fall in overseas shipments, given the export-led nature of the sector, meaning overall UK car production is down 10.2% to 592,862 units, since January.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
The SMMT said growth is expected to return once new models come on stream.
Justin Cox, an analyst at GlobalData, points out that UK car production is running way under where it was pre-pandemic. “The UK auto industry is struggling in overall volume terms this year,” he points out. “This year there is certainly some negative impact from significant model changes and that’s to be expected.”
The news comes as fresh SMMT trade data analysis details how, despite a drop in car production this year, the sector remains Britain’s largest exporter of manufactured products, increasing its share of these exports to 13.9% in the first half of 2024. The value of these exports has remained consistently high, driven by global demand for premium UK-made electrified vehicles, which are worth roughly one and a half times more than ICE models, the SMMT said. Moreover, in the 12 months to June, the sector was worth £114 billion in total trade, encompassing £46.8 billion in exports and £67.2 billion in imports.
Mike Hawes, SMMT Chief Executive, said: “As UK Automotive undergoes its most radical transformation in more than a century, short-term production declines were always anticipated, and they represent a temporary adjustment in exchange for long term growth. Following record investment announcements last year, the sector is ready to build on its position as the UK’s largest exporter of manufactured products. To do so, we need the necessary industrial and market conditions, and the forthcoming Budget and Industrial Strategy must put in place ambitious measures to bolster business confidence, attract investment and secure competitiveness.”
The SMMT is calling for the UK Government’s Autumn Budget to include the incentivisation of private consumer demand for battery electric vehicles, which it said would accelerate market transition and stimulate industrial growth.
