UK car manufacturing output fell 15.3% in October, the eighth consecutive month of decline, according to the latest figures published by the Society of Motor Manufacturers and Traders (SMMT). The SMMT said the decline comes as manufacturing plants continue retooling for next generation of zero emission vehicles.

Some 24,719 battery electric, plug-in hybrid and hybrid electric cars were produced in the UK in October, representing almost a third (31.9%) of output, despite a volume decline of 32.6%. Since January, UK car makers have produced 239,773 electrified vehicles, with 71.8% of them exported to global markets.

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Overall, volumes for both domestic and export markets declined in October, down 4.7% and 17.6% respectively.

In the year to date, UK car production has now fallen by 10.8% to 670,346 units, due primarily to lower exports. While production for the UK is up 5.3% to 159,125 units, exports are down 14.8% to 511,221 units, equivalent to 89,095 fewer cars being shipped overseas in the first ten months.

The UK’s output decline news follows a series of announcements by manufacturers and suppliers, in the UK and Europe, reflecting challenging market conditions and a slowdown in the transition to electrification. The UK Government’s Zero Emission Vehicle (ZEV) Mandate is presenting a further challenge to UK producers as they struggle to hit mandated EV share numbers or face big fines. This week, Stellantis announced a closure plan for its Luton plant.

‘Deeply concerning times’  

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Mike Hawes, SMMT Chief Executive, said: “These are deeply concerning times for the automotive industry, with massive investments in plants and new zero emission products under intense pressure. Slowdowns in the global market – especially for EVs – are impacting production output, with the situation in the UK particularly acute given we have arguably the toughest targets and most accelerated timeline but without the consumer incentives necessary to drive demand.

“The cost of stimulating that demand and complying with those targets is huge and, as we are seeing, unsustainable. Urgent action is therefore needed and we will work with government on its rapid review of the regulation and the development of an ambitious and comprehensive Industrial Strategy to assure our competitiveness.”