UK car production fell by -8.4% in August, according to new
figures published today by the Society of Motor Manufacturers and
Traders (SMMT).
With August conventionally a low output month due to summer
shutdowns, the decline was equivalent to just 3,781 fewer units
as 41,271 new cars rolled off production lines.
The decline continues the trend seen across the year, as
factories wind down production of key models and retool for new –
primarily electric – model production, following the £24 billion
of UK automotive manufacturing investment announced last year.
Electrified (battery electric, plug-in hybrid and hybrid)
production for the month fell by -25.9%, leading to a fall in
share of output to 29.6%. However, this decline is expected to be
reversed in the longer-term as new models come onstream.
Production for the domestic market appeared to decline sharply,
by -19.8%, although this impact is amplified by the small overall
output volume for the month and the fact that the vast majority
of UK production is for export.
By comparison, exports fell by a modest -5.9%, largely due to
changeovers of models built for EU markets. The 27 Member States
remain by far the biggest export destination, comprising 49.8% of
total exports. The US (17.0%), China (6.5%), Japan (5.1%) and
Australia (4.4%) made up the remaining top five export
destinations for UK car production, with growth in both the
American and Japanese markets.
Year to date, UK car production is down -8.5% at 522,823 units
and output for the UK market is up 12.3% despite August's
domestic decline.
Mike Hawes, SMMT Chief
Executive, said, “With the
traditional summer shutdowns and factories prepping to switch to
new models, August was always going to be a quieter month for
output. The sector remains optimistic about a return to growth,
however, with record levels of investment announced last year.
“Realising those investments and securing more depends on the UK
industry maintaining its competitiveness so we look forward both
to the Chancellor's Autumn budget and the government's proposed
Industrial Strategy as critical opportunities to demonstrate that
it backs auto. Labour's Automotive Sector Plan, launched at their
Party Conference a year ago, should be the blueprint with its
proposals for cheaper, green energy, skills investment and the
cultivation of healthy markets here and abroad. These are the
measures that would enable the industry to drive economic growth
in every part of the country.”
