UK car production plummets to 44-year low amid ‘enormous strain’ on major brands – ‘Disastrous’

UK car manufacturing has suffered its sharpest November decline in over four decades, with production plummeting by 30.1 per cent compared to the same month last year.

The drop marks the ninth consecutive month of decline for the sector, according to figures released today by the Society of Motor Manufacturers and Traders (SMMT).

Just 64,216 cars rolled off factory lines last month, representing 27,711 fewer vehicles than in November 2023.

The dramatic downturn has been attributed to multiple factors, including strategic product decisions and weakness in key global markets.

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Industry experts note this represents the worst performance for the month since 1980, as manufacturers continue retooling their factories to accommodate electric vehicle production.

The decline comes despite last year’s November figures showing significant growth as Covid-related supply chain challenges had begun to fade.

All major manufacturers experienced declines during the period, highlighting the widespread nature of the industry’s current challenges.

Output for both domestic and export markets witnessed sharp declines, with domestic production falling by 56.7 per cent.

Export markets fared marginally better but still recorded a significant 21.3 per cent decrease in production. More than eight in ten cars manufactured in the UK were destined for overseas markets.

The European Union remained a crucial export destination, receiving over half (52.3 per cent) of all exported vehicles.

The year-to-date figures paint an equally concerning picture, with total UK car output falling by 12.9 per cent to just under 735,000 units. This is 108,000 fewer vehicles compared to last year.

Current production levels remain almost half a million units below 2019 volumes, highlighting the sector’s ongoing challenges.

Commenting on the latest data, Mike Hawes, SMMT Chief Executive, said: “These figures offer little Christmas cheer for the sector.

“While a decline was to be expected given the extensive changes underway at many plants, manufacturing is under pressure at home and abroad, with billions of pounds committed to new technologies, new models and new production tooling.

“[The] Government can help by supporting consumers in the transition, fast-tracking its Industrial Strategy for advanced manufacturing and, most urgently, reviewing the market regulation which is putting enormous strain on the sector.”

Electric vehicle production also faced significant challenges, with 19,165 battery electric, plug-in hybrid and hybrid electric cars manufactured in November.

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This represents nearly a third (29.8 per cent) of total output, despite volumes declining by 45.5 per cent compared to the previous year.

John Redwood, the former MP for Wokingham, took to X, formerly known as Twitter, saying: “UK car output in November for the domestic market was down a disastrous 56.7 per cent.

“Too few UK consumers want the new electric products [the] Government insists on.”