UK Car Production Declines by 14.4% in July, SMMT Reports

The UK car production industry has seen a decline in output over the past few months, with July showing a 14.4% decrease compared to the same time last year. The Society of Motor Manufacturers and Traders (SMMT) attributes this drop to model changeovers and temporary supply chain challenges.

Despite the overall decrease in production, electrified vehicle manufacturing has remained relatively stable, accounting for 37.5% of output in July. This shows a growing trend towards more sustainable and environmentally friendly vehicles in the market.

While domestic production for the year has increased by 14.8%, export volumes have seen a decline of 14.3%. The industry is facing challenges in reaching international markets, with the EU, US, China, Turkey, and Japan being the largest export destinations.

SMMT chief executive Mike Hawes acknowledges the need for the industry to adapt to the transition to zero-emission vehicle production. He emphasizes the importance of investment in skills, healthy markets, green energy, and fair trade deals to enhance global competitiveness and drive economic growth.

Despite the current challenges, the UK car production industry remains a significant contributor to the economy, with total output still worth over £20bn. As the industry continues to evolve and adapt to changing demands, there is potential for growth and success in the future.