UK car production slumps by 20 per cent in September

Overall production has been down by 10.2 per cent since January.

Photo by: Jaguar

By: Angel Sergeev

Oct 25, 2024 at 3:13am ET

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September turned out to be more of a speed bump than a smooth ride for the UK’s car production industry, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT). With a hefty 20.6 per cent drop, only 70,039 shiny new vehicles rolled off production lines last month, a significant dip from last year’s more promising September.

The reason for this slowdown? It’s partly because factories are gearing up for the electric era, halting some production to make way for the next generation of zero-emission vehicles. Ironically, while production took a hit, EVs were the stars of the month, with 21,309 electrified models leaving factories – roughly 30 per cent of all cars produced. This greener gear shift has certainly electrified the sector, even though overall volumes still took a big 37 per cent nosedive compared to last September.

The production cuts hit both domestic and international markets about equally, with domestic output down 20.8 per cent and exports down 20.6 per cent. Exports to the EU, the UK’s largest car market, saw the biggest drop, with shipments sliding 28.6 per cent to 26,825 units. Even the Chinese market, normally a top buyer, wasn't immune, with demand down 23.1 per cent. But on a brighter note, the US showed a surprising appetite for British-made cars, revving up with a 24.6 per cent jump in demand.

Zooming out to look at the year-to-date, the numbers are still on a downward slope. Overall production has been down by 10.2 per cent from January, with overseas exports, a key driver for the UK auto sector, declining 14.4 per cent in that period. While the UK saw a small 6.5 per cent boost in production, it wasn’t nearly enough to cancel out the export drag. But the industry isn’t about to throw in the towel just yet: manufacturers are betting on a new lineup of electric and hybrid models, aiming to ramp production back up, and possibly reach over a million units by 2027.

Though output has sputtered, the UK’s auto industry still holds the title as Britain’s largest exporter of manufactured goods, thanks in large part to the increasing demand for premium electrified vehicles. These eco-friendly cars are valuable exports, worth about 1.5 times more than their fossil-fueled counterparts, helping to keep the sector’s value high. The SMMT data shows that in the 12 months to June, the auto sector's total trade value hit a whopping £114 billion.

Source: SMMT