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UK car production fell -7.6% in H1, according to the Society of Motor Manufacturers and Traders (SMMT). Factories turned out 416,074 units, 34,094 fewer than in the same period in 2023.
A -26.6% decline in June was caused by multiple model changes. Manufacturers also turned their attention to electrified models following £23.7 billion of UK investment announced last year.
Mike Hawes, SMMT Chief Executive, 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.”
Electrified vehicle production was down -7.6% in H1, in line with overall volumes, to 157,224 units which represents 37.8% of all output which is unchanged from last year.
Overall car output for the UK market was up 17.7% to 106,157 units but this did not offset a -13.9% decline in production for export. More than 7 in 10 cars were made for customers overseas.
The EV transition is impacting UK light vehicle production, which is expected to decline -9.3% this year to around 910,000 units. Output is expected to recover to just over 1.1 million units in 2028 when over half of all UK car and van production is expected to be zero emission.
By 2030, output is expected to reach around 1.167 million. The UK could produce more than nine million zero emission light vehicles by 2035.