UK car production experienced a notable decline of 14.4% in July, according to the latest data released by the Society of Motor Manufacturers and Traders (SMMT). The figures reveal that 65,478 vehicles were produced during the month, with the decrease primarily attributed to changes in vehicle models and temporary disruptions in the supply chain.
Despite a significant drop in production volume by 18.6%, the proportion of electrified vehicles—including battery electric, plug-in hybrid, and hybrid models—remained relatively steady at 37.5%, down from 39.5% in July 2023.
Domestic production saw a modest decrease of 5.1%, equating to just 672 fewer vehicles. However, international demand remained strong, with 80.9% of the cars produced in July earmarked for export. The top five export destinations were the EU, accounting for 51.3% of exports, followed by the US (17.6%), China (8.6%), Turkey (5.5%), and Japan (3.1%). Overall export volumes declined by 16.3% for the month.
Year-to-date figures show a 14.8% increase in domestic production, while export volumes have decreased by 14.3%. Despite these fluctuations, the total value of UK automotive production remained steady at over £20 billion, reflecting the sector’s high value.
Mike Hawes, CEO of SMMT, commented on the situation: “After a period of substantial growth last year, a certain level of adjustment in production was anticipated. The industry is undergoing a significant transition towards zero-emission vehicles, which is likely to introduce some volatility. As investments in new models begin to pay off, we expect production volumes to rise, provided we capitalize on opportunities to boost our global competitiveness.
“To ensure continued growth in the automotive sector, we must invest in skills, support robust markets, promote affordable green energy, and secure fair trade agreements to facilitate easier access for British-built vehicles in international markets. An overarching industrial strategy is crucial to maintaining the automotive sector as a major contributor to economic growth.”