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Highlights:
- UK car production fell 20.6% in September as factories retooled for electric vehicles.
- Year-to-date domestic production is up 6.5%, but exports have dropped 14.4%.
- SMMT forecasts a recovery in production, expecting over one million units by 2027.
UK car manufacturing experienced a significant drop in September, with production falling by 20.6% as factories prepare for the launch of new electric vehicle models, according to the Society of Motor Manufacturers & Traders (SMMT). Both domestic and overseas markets saw similar declines in production output, as manufacturers began winding down current models and retooling production lines for zero-emission vehicles.
The number of electrified vehicles produced, including battery electric, plug-in hybrid, and other hybrid models, also fell sharply. Just over 21,300 units were made in September, representing less than a third of all cars produced in the UK, and down 37% compared to the same period last year.
Despite this, year-to-date production for the UK market has risen by 6.5%, while exports have fallen by 14.4%. Overall, UK car production has dropped 10.2% compared to 2023.
The SMMT is optimistic about the future, predicting that production will recover as new models come into production. It forecasts that car and light van manufacturing could surpass one million units by 2027, with potential to reach 1.3 million units by 2030.
Coinciding with the upcoming Budget, the SMMT highlighted that the automotive sector remains the UK's largest exporter of manufactured goods. In 2023, shipments of cars, vans, and automotive components contributed nearly £47 billion to the economy.
