In a concerning turn for the UK automotive industry, car manufacturing output plummeted by 11.9 per cent in May, totalling just 69,652 units, as revealed by the latest figures from the Society of Motor Manufacturers and Traders (SMMT). This decline highlights the challenges faced by the sector, particularly in the export market.

Despite a 9.7 per cent rise in production for the UK market, reaching 17,754 units, it was insufficient to counterbalance the 17.4 per cent drop in export volumes, which fell to 51,898 units. Nevertheless, exports continued to dominate the industry, with nearly three-quarters (74.5 per cent) of all UK-produced cars being shipped to global markets. The European Union remained the top destination, receiving 52.5 per cent of exports, followed by the United States at 18.2 per cent and Turkey at 8.0 per cent.

March also saw a serious 27.1 per cent year-on-year decrease in car production, with only 59,467 units manufactured. This marked the first decline since August of the previous year, reflecting the volatile nature of the industry.

On a brighter note, the production of electrified vehicles (including battery-electric, plug-in hybrid, and hybrid models) showed resilience in May. A total of 26,475 units were produced, representing 38 per cent of the overall output. This marks a three-percentage point increase compared to May 2023.

“Massive change is underway in the UK’s car factories as manufacturers retool for new electric models. Amid strong international competition for green automotive investment, however, the UK needs to ensure it has the most attractive conditions for manufacturing businesses and a compelling offer for existing and new investors. Essential to this is a long-term industrial strategy, which encompasses all industry, all stakeholders, and all of government in the pursuit of sustainable and green growth,” Mike Hawes, SMMT Chief Executive, commented.