UK automotive sector sees mixed output in August

The UK automotive industry faced a mixed month in August, with both commercial vehicle (CV) and car production experiencing declines. According to the latest figures from the Society of Motor Manufacturers and Traders (SMMT), while the overall trend shows a steady recovery post-pandemic, August’s traditionally low output month due to summer shutdowns led to temporary dips in both sectors.

Commercial vehicle manufacturing: A 14-year high despite August decline

UK commercial vehicle production dropped by -10.0% in August, with 6,044 units rolling off production lines. However, this decline, equivalent to just 673 fewer units, aligns with the expected seasonal downturn and continues to show resilience. Year-to-date production remains strong, with 78,805 CVs produced in the first eight months of the year, marking a 5.8% increase from 2023 and the best performance since 2010.

Despite the slight August dip, the sector continues to outperform pre-pandemic levels, with production up by a substantial 8.8% compared to 2019. Export demand, particularly from the EU, played a significant role in this success, with 59.3% of total output destined for overseas markets. Although exports dipped marginally by just -0.2%, domestic demand dropped more sharply by -21.3%.

However, he also stressed the need for continued government support to ensure market conditions remain favourable, particularly as the industry transitions towards decarbonisation.

Car production: Model transitions and shutdowns lead to decline

In the car manufacturing sector, August saw an -8.4% drop in output as factories continued their transition to new, primarily electric, models. A total of 41,271 cars were produced, reflecting the impact of model switchovers and the traditional summer shutdown. The domestic market saw a sharper decline of -19.8%, although the small overall output for the month exaggerated this figure.

Exports, which account for the majority of UK car production, fell by a more modest -5.9%, with the EU remaining the primary destination for British-made cars, making up 49.8% of exports. Markets such as the US and Japan, however, showed growth, offering some optimism for future trade opportunities.

Electrified vehicle production, which had seen significant investment over the past year, also experienced a decline of -25.9% in August. Despite this, the SMMT remains optimistic about the long-term outlook, with electrified models expected to rebound as new investments and retooling efforts take effect.

Mike Hawes expressed confidence in the sector’s future, stating, “The sector remains optimistic about a return to growth, with record levels of investment announced last year.” He emphasized the importance of the upcoming government budgets and industrial strategies in ensuring the UK’s competitiveness, calling for continued support for green energy, skills development, and robust domestic and international markets.