New data from the Society of Motor Manufacturers and Traders (SMMT) reveals a 7.6% decline in UK car production in the first half of the year. This drop, attributed to manufacturers revamping lines for electric vehicle production, saw factories produce 416,074 cars, down by 34,094 compared to the same period in 2023.
The trend in electric car production mirrored the overall decline, also at 7.6%. While 106,157 cars were manufactured for the UK market, a 17.7% year-on-year increase, production for overseas markets dropped by 13.9%, totalling 309,917 units. The European Union remained the largest export market, accounting for 55.4% of exports, followed by the US, China, Turkey, and Australia, which together comprised 29.4%.
Top export destinations also included Japan, Canada, South Korea, the UAE, and Switzerland. An independent forecast predicts total production for the year will reach around 910,000 units, a 9.3% decline from 2023.
SMMT chief executive Mike Hawes noted the industry’s transition to electric vehicles as a potential growth driver for the UK economy, emphasizing the need for government support through gigafactories, decarbonized energy, and a faster planning system. He highlighted investments of £24 million in manufacturing made last year and acknowledged the challenges and volatility in shifting from petrol and diesel to electric models, with significant changes from companies like Mini, Nissan, and Jaguar Land Rover.
