The latest data from the Society of Motor Manufacturers and Traders (SMMT) reveals a 7.6% decrease in UK car production in the first half of 2024, as the industry pivots towards electric vehicle manufacturing.
The total output stood at 416,074 vehicles, marking a reduction of 34,094 units compared to the same period in 2023.
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The decline was anticipated as carmakers are reconfiguring their production lines to accommodate electrified models, following substantial investments in the UK’s automotive sector, the trade association said.
Despite the overall downturn, the production of electrified vehicles, including battery electric, plug-in hybrid, and hybrid models, also fell by 7.6%, mirroring the general trend, with 157,224 units produced.
Car production for the UK market registered a 17.7% rise, reaching 106,157 units, this increase was insufficient to counterbalance a 13.9% fall in export production.
More than 70% of the cars manufactured were intended for international markets, underscoring the significance of exports for the UK automotive industry.
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By GlobalDataExports remain a crucial component of the UK’s automotive sector, with the European Union being the predominant market, accounting for 55.4% of all car exports in the first half of the year.
The US, China, Turkey and Australia were also key export destinations, collectively representing 29.4% of total exports. Other important markets included Japan, Canada, South Korea, the UAE and Switzerland.
SMMT chief executive Mike Hawes said: “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.”
