UK car manufacturing output fell by 7.0% in April, down to 61,820 units, according to figures released by the Society of Motor Manufacturers and Traders (SMMT). It was the second consecutive monthly decline and the SMMT said it reflected ‘factory adjustments in preparation for next generation models and their electrified powertrains’.
Output for the UK market – at 14,021 units – rose 19.8% but failed to offset a 12.7% decline in production for overseas buyers to 47,799 units.
The European Union took the majority of car exports (55.8%) followed by the US (15.2%), China (5.4%), Turkey (4.2%) and Australia (2.8%). Shipments to the US and Turkey rose, with those to the EU, China and Australia all experiencing double digit declines.
Electrified vehicle (battery electric, plug-in hybrid and hybrid) volumes represented 40.5%, up from 37.7%, of all production with manufacturers producing a combined 25,031 units, a modest 0.1% rise on the previous year, constrained by the transition of factories to new models and technology.
Mike Hawes, SMMT Chief Executive, said: that the April decline was expected. He said: “Another month of falling UK car production was expected given the significant transformation underway within factories as manufacturers retool to produce new models. Keeping this progress on track is essential and requires favourable industrial and market conditions. With a general election in a matter of weeks, the next government must ensure the conditions are right not just for the competitiveness of UK manufacturing, but for the investment required to transition the sector to a net zero future.”
Justin Cox, an analyst at GlobalData, points out that UK car production is still way under where it was pre-pandemic. He said: “Our forecast for this year sees UK car output at a little over 0.8 million units. It was much higher before the pandemic, but we see it settling in the medium term at around a million units a year.”
General Election
Ahead of the UK general election (4 July), SMMT is calling for the next government to adopt five key pledges set out in its Manifesto 2030 as part of a dedicated industrial strategy. These include delivering low cost zero carbon energy, ensuring a skilled workforce fit for the future, securing free trade deals with existing and emerging markets, and backing the domestic market for new electric vehicles.
