Car production slowdown continues as factories gear up for new models
UK CAR MANUFACTURING (data for July 2024) Hi-res charts available via Dropbox: https://www.dropbox.com/scl/fo/ubwlyo34jo3cfvrk0i3n8/ALfE7QDZnk_86XUr7zKZWlA?rlkey=w03e0q8lxeyhzcruib8vlsity&st=vdkx29ko&dl=0 UK car production declines -14.4% in July as model changeovers and temporary supply chain constraints restrict output. Export volumes down -16.3% but domestic demand holds up, declining by just 672 units. Production output value in first seven months of 2024 holds level, despite volume decline. Thursday 29 August, 2024 UK car production fell by -14.4% in July, according to new figures published today by the Society of Motor Manufacturers and Traders (SMMT). Factory lines rolled out 65,478 vehicles in the month, with the decline in output due predominantly to model changeovers and temporary supply chain challenges. Despite a -18.6% decline in volume, electrified (battery electric, plug-in hybrid and hybrid) vehicle manufacturing maintained a relatively stable 37.5% share of output, compared with 39.5% in July 2023. Production for the UK market fell slightly, by -5.1%, although in volume terms this represented just 672 fewer units. More than four in five (80.9%) cars produced in July were destined for customers overseas, with the five largest markets by volume encompassing the EU (51.3% of exports), US (17.6%), China (8.6%), Turkey (5.5%) and Japan (3.1%). Total export volumes for the month fell -16.3%. Year to date, domestic production remains up 14.8% while export volumes are down -14.3%. However total output was still calculated to be worth more than £20 billion at factory gate prices – unchanged on the same period last year, demonstrating the high value of UK automotive production.1 Mike Hawes, SMMT Chief Executive, said, “Following significant growth last year, some readjustment in output was to be expected. Indeed, an ongoing degree of volatility is likely as the industry restructures to transition to zero emission vehicle production. As the billions already committed to new models start to deliver a return, volume growth will resume, providing we seize every opportunity to enhance our global competitiveness. We need investment in skills, healthy markets, cheaper green energy, and fair trade deals that help British-built vehicles reach international customers more easily, all of which should be wrapped in an over-arching industrial strategy that ensures automotive continues to be a key driver of economic growth.” Notes to editors1 Average 2024 factory gate price: £41,800; 2023: £38,200 (inflation adjusted) About SMMT and the UK automotive industryThe Society of Motor Manufacturers and Traders (SMMT) is one of the largest and most influential trade associations, representing the automotive industry in the UK. The automotive industry is a vital part of the UK economy, integral to growth, the delivery of net zero and the UK as a global trade hub. It contributes £93 billion turnover and £22 billion value added to the UK economy, and invests around £4 billion each year in R&D. With 198,000 people employed directly in manufacturing and some 813,000 across the wider automotive industry. Many of these automotive manufacturing jobs are outside London and the South-East, with wages that are around 13% higher than the UK average. The sector accounts for 12% of total UK exports of goods, with UK-produced vehicles traded globally, generating £115 billion of trade in total automotive imports and exports. The UK manufactures almost every type of vehicle, from cars, to vans, taxis, trucks, buses and coaches, as well as specialist and off-highway vehicles, supported by more than 2,500 component providers and some of the world’s most skilled engineers. In addition, the sector has vibrant aftermarket and remanufacturing industries. The automotive industry also supports jobs in other key sectors – including advertising, chemicals, finance, logistics and steel. More detail on UK Automotive available in SMMT’s Motor Industry Facts publication at www.smmt.co.uk/reports/smmt-motor-industry-facts/ Broadcasters: SMMT has an ISDN studio and access to expert spokespeople, case studies and regional representatives. SMMT media contacts Paul Mauerhoff 07809 522181 pmauerhoff@smmt.co.uk James Boley 07927 668565 jboley@smmt.co.uk Rebecca Gibbs 07708 480889 rgibbs@smmt.co.uk Scott Clarke 07912 799959 sclarke@smmt.co.uk Emma Butcher 07880 191825 ebutcher@smmt.co.uk
