UK car production falls in line with expectations for September

UK car production fell by -20.6% in September, according to the Society of Motor Manufacturers and Traders (SMMT), as 70,039 units rolled off production lines.

The decline was expected as factories scale back production of current models and focus on zero-emissions vehicles. Around 21,309 electrified models were manufactured in September, representing 30.4% of all cars produced despite an overall decline in volume of -37.0% compared to the same month last year.

Mike Hawes, chief executive of SMMT, said: “As UK Automotive undergoes its most radical transformation in over a century, short-term production dips were always anticipated and represent a temporary adjustment in exchange for a long term growth.

“Following record investment announcements last year, the sector is set to consolidate its position as the UK’s largest exporter of manufactured goods.

“To do this, we need the necessary industrial and market conditions, and the next budget and industrial strategy must put in place ambitious measures to strengthen business confidence, attract investment and ensure competitiveness.”

Domestic and export market output fell -20.8% to 18,614 units and -20.6% to 51,425 units, respectively.

A 6.5% rise in UK production was not enough to offset a -14.4% drop in overseas shipments, total UK car production down -10.2 % to 592,862 units since January. Growth is expected to return with new models.

Despite the fall in car production this year, the sector remains the UK’s largest exporter of manufactured goods, increasing its share of these exports to 13.9% in the first half of 2024. The value of these exports remain high, driven by global demand for UK-made electric vehicles, which are worth about one and a half times more than ICE models.