UK car production takes a big hit in first half of 2024
June saw a major 25+ per cent decline in domestic production.
The UK automotive industry experienced a significant downturn in the first half of 2024, with car production falling by 7.6 per cent, as reported by the Society of Motor Manufacturers and Traders (SMMT). During this period, a total of 416,074 units were manufactured, marking a decrease of 34,094 units compared to the same timeframe in 2023. The decline was most pronounced in June, which saw a dramatic 26.6 per cent drop due to extensive model changes.
This downturn was anticipated as manufacturers are in the midst of retooling their production lines to accommodate the shift towards electrified vehicles. This transition follows a substantial £23.7 billion investment in the UK automotive sector last year, aimed at fostering the production of electric and hybrid models.
UK new car production, H1 2024
The export market remains crucial for UK car manufacturers, with the European Union continuing to be the most significant destination. The EU accounted for 55.4 per cent of all UK car exports in the first six months of the year, equating to 171,745 units. Other key export markets included the US, China, Turkey, and Australia, which together made up 29.4 per cent of overseas orders. Japan, Canada, South Korea, the UAE, and Switzerland rounded out the top ten export destinations.
Despite the overall decline, there was a notable increase in car production for the domestic market. The UK saw a 17.7 per cent rise in output for its own market, totalling 106,157 units. However, this increase was insufficient to counterbalance the 13.9 per cent drop in production for export, as the majority of vehicles manufactured in the UK are destined for international customers.
Production reports for the previous months:
Electrified vehicle production, including battery electric, plug-in hybrid, and hybrid models, mirrored the overall production trend with a 7.6 per cent decline, resulting in 157,224 units produced. These electrified models constituted 37.8 per cent of total output, a figure that has remained steady from the previous year.
“The UK auto industry is moving at pace to build the next generation of electric vehicles – a transition that can be a growth engine for the entire British economy. The new government’s commitments to gigafactories, a decarbonised energy supply and a faster planning system will help boost our competitiveness and sustain employment in a sector that delivers well paid, skilled jobs nationwide. Amid fierce global competition, however, industry and government must work quickly to deliver those commitments, creating an industrial strategy that enables the growth the economy craves,” Mike Hawes, SMMT Chief Executive, commented.
Source: SMMT
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