Car production falls for the eighth consecutive month – London Business News | Londonlovesbusiness.com

New figures released by the Society of Motor Manufacturers and Traders (SMMT) shows that car production in the UK has fallen for the eighth consecutive month in a row.

The SMMT figures shows that UK factories made 15.3% less cars in October compared to the year before.

They said between January and October this year 670,346 car was produced which is 10.8% less than the same period the previous year, this mainly down to a fall in exports.

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 (electric vehicles) – 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.”

UK factories are expected to make around 911,000 vehicles this year and for 2025 839,000, this is around a third less than 1.4 million vehicles and cars made prior to Covid in 2019.

The SMMT said, “Manufacturers announced more than £20 billion worth of investment last year to drive their transition to EV production, a massive sum demonstrating the industry’s commitment to net zero.

“If planned UK zero emission model launches stay on track and consumer demand improves, there is potential to get above one million units in 2028.

“If not, output would remain below one million units until 2030, and in a worst-case scenario drop to fewer than 750,000 should plants close and others have reduced model line-ups, which would have a devastating effect on the sector, jobs and economic growth.”

It added: “Ensuring the UK remains a globally competitive location for advanced vehicle manufacturing, therefore, requires an industrial and trade strategy that works for the sector and, in addition, a healthy domestic market, given car makers build close to where they sell.

“Government must work in partnership with industry to deliver market regulations that support consumers and industry, including measures to address the UK’s high cost of energy and the signing of trade deals built on free and fair trade.”