The UK car manufacturing output registered a 7% decrease in April 2024 compared to the same month last year, producing 61,820 vehicles.
According to the data released by the Society of Motor Manufacturers and Traders (SMMT), this marks the second month of declining production, largely due to factories retooling for next-generation and electrified models.
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Electrified vehicle production, encompassing battery electric, plug-in hybrid, and hybrid models, saw a marginal increase, making up 40.5% of total production with 25,031 units.
However, this was just a 0.1% rise from the previous year, hindered by the ongoing transition to new technologies.
Despite a 19.8% increase in production for the domestic market, a 12.7% drop in overseas demand led to a total of 47,799 units exported.
The European Union was the largest export market with a 55.8% share, followed by the US (15.2%), China (5.4%), Turkey (4.2%) and Australia (2.8%).
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By GlobalDataNotably, exports to the US and Turkey increased, while those to the EU, China, and Australia fell sharply.
Considering the upcoming general election, the SMMT has proposed a manifesto urging the next government to implement five key initiatives to enhance the automotive sector’s competitiveness.
These initiatives focus on zero-carbon energy, workforce skills, free trade agreements, and support for the domestic electric vehicle market.
Year-to-date figures show a 0.8% decrease in car manufacturing output compared to 2023, with a total of 284,191 units produced.
While exports have declined by 8.7%, domestic production has surged by 31%.
The forecast for UK car and light van production anticipates a 6.2% decline to approximately 940,000 units this year.
However, growth is expected to resume in 2025, with projections of more than one million units from 2026 and reaching 1.2 million later in the decade.
SMMT chief executive Mike Hawes said: “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.”
In March, the sector witnessed a 27.1% year-on-year reduction, with 59,467 vehicles manufactured.
