Production dips as sector calls on next government to enhance competitiveness

New figures published by the Society of Motor Manufacturers and Traders (SMMT) showed that UK car manufacturing output decreased by 7% in April, dropping to 61,820 units.

This marked the second consecutive monthly decline, reflecting factory adjustments in preparation for next-generation electrified models.

Domestic output, at 14,021 units, rose by 19.8% but was insufficient to offset a 12.7% decline in production for overseas markets, which fell to 47,799 units.

Nearly 80% of cars produced were exported, with the European Union receiving the majority (55.8%), followed by the US (15.2%), China (5.4%), Turkey (4.2%), and Australia (2.8%). Shipments to the US and Turkey increased, while exports to the EU, China, and Australia saw double-digit declines.

Electrified vehicle production including battery electric, plug-in hybrid, and hybrid models accounted for 40.5% of total production, up from 37.7%. Manufacturers produced a combined 25,031 units, a modest 0.1% increase from the previous year, constrained by the transition to new models and technology.

Mike Hawes, SMMT chief executive, said: "Another month of falling UK car production was expected given the significant transformation underway within factories as manufacturers retool to produce new models.

“Keeping this progress on track is essential and requires favourable industrial and market conditions. With a general election in a matter of weeks, the next government must ensure the conditions are right not just for the competitiveness of UK manufacturing, but for the investment required to transition the sector to a net zero future."

Ahead of the general election, SMMT is urging the next government to adopt five key pledges from its Manifesto 2030 as part of a dedicated industrial strategy.

These pledges include delivering low-cost zero-carbon energy, ensuring a skilled workforce fit for the future, securing free trade deals with existing and emerging markets, and backing the domestic market for new electric vehicles.

It said that implementing these measures would bolster the sector's competitiveness and drive economic growth and job prosperity across the country while achieving environmental goals.

Year-to-date, UK car manufacturing output is down 0.8% compared to 2023, with over a quarter of a million units (284,191) produced. Exports have declined by 8.7% to 209,458 units, while production for the UK has increased by 31.0% to 74,733 units.

The latest independent production outlook anticipates UK car and light van production to fall by 6.2% to approximately 940,000 units this year, with growth expected to resume in 2025 and surpass one million units by 2026, reaching 1.2 million later in the decade.