UK car manufacturing output drops by 7 per cent in April

UK car manufacturing experienced a significant decline in April, with output dropping by 7 per cent to 61,820 units, according to the latest figures released by the Society of Motor Manufacturers and Traders (SMMT). This marks the second consecutive month of reduced production.

Despite a 19.8 per cent increase in domestic production, amounting to 14,021 units, the rise was insufficient to balance a substantial 12.7 per cent decrease in exports. Production for overseas markets fell to 47,799 units, with nearly 80 per cent of cars manufactured in the UK destined for international markets. Notably, shipments to the United States and Turkey saw an uptick, whereas exports to the EU, China, and Australia suffered double-digit declines.

“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,” Mike Hawes, SMMT Chief Executive, commented.

The production of electrified vehicles, including battery electric, plug-in hybrid, and hybrid models, comprised 40.5 per cent of the total output, an increase from 37.7 per cent in the previous year. In total, manufacturers produced 25,031 electrified units.

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Year-to-date figures reveal a slight decline in UK car manufacturing output, down 0.8 per cent compared to 2023, with a total of 284,191 units produced so far this year. Exports have dropped by 8.7 per cent to 209,458 units, while production for the domestic market has surged by 31.0 per cent, reaching 74,733 units.

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The latest figures underscore the challenges faced by the UK car manufacturing sector as it navigates the shift towards electrification amidst fluctuating global demand. The focus on developing next-generation vehicles and electrified powertrains is essential for future competitiveness, but it is also causing short-term disruptions in production levels.

The latest independent production forecast suggests that UK car and light van production will decline by 6.2 per cent this year, potentially reaching around 940,000 units. However, the outlook is more optimistic for the future, with expectations of a return to growth in 2025. Production is projected to surpass one million units from 2026, eventually reaching 1.2 million units by the end of the decade.

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