The Society of Motor Manufacturers and Traders (SMMT) reported a decrease in UK car production last month, with 59,467 vehicles manufactured. This represents a 27% decline compared to the same time last year and marks the first dip since August of the previous year. However, the SMMT attributes this decline to the predicted outcome of car manufacturers repurposing their factories for next-gen electric vehicles.
The decline was observed both domestically and internationally, with UK volumes decreasing by 0.3% to 19,995 units and international exports slumping by 35.9% to 39,472 units. Nevertheless, more than six out of ten cars manufactured in March were earmarked for global distribution, with the majority of these exports going to the European Union (57.9%).
Despite the dip in March, car production in Q1 managed to stay afloat with a 1.1% increase, hitting 222,371 units when compared to the same timeframe in the previous year.
Eco-friendly petrol alternatives, including battery electric, plug-in hybrid, and hybrid vehicle models, made up over one-third of the total production.
SMMT’s chief executive Mike Hawes commented, “This fall is not unexpected given the wholesale changes taking place within UK car factories as existing models are run out and more plants transition to electric vehicle production.”
He added, “We can expect further volatility throughout 2024 as manufacturers lay the foundations for a successful zero emission future. Recent investment announcements have boosted confidence and enhanced the UK’s reputation but there needs to be an unrelenting commitment to competitiveness.”
New production estimates predict a 6.2% drop in UK car and light van production in 2023 to roughly 940,000 vehicles, primarily as a consequence of model changeovers. However, a return to growth is projected by 2025, and production is projected to surpass the one-million mark from 2026, reaching 1.2 million vehicles by the end of the decade, fueled by a rise in EV production.
