UK car production slumps in July as changeovers and supply chain woes weigh

29th Aug 2024 08:02

(Sharecast News) - UK car production slumped 14.4% in July, according to the Society of Motor Manufacturers and Traders, with a total of 65,478 vehicles rolling off factory lines last month as model changeovers and temporary supply chain bottlenecks disrupted output.

However, despite the overall reduction, the production of electrified vehicles remained relatively stable and accounted for 37.5% of the total output in July, only slightly down from 39.5% at the same time a year earlier.

UK domestic production was down a smaller 5.1% but notably, more than 80% of the cars produced in July were destined for export markets, with the European Union being the largest recipient, accounting for 51.3% of all exports.

On an annualised basis domestic production has risen by 14.8%, while export volumes have decreased by 14.3%.

SMMT chief executive Mike Hawes 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."

Reporting by Iain Gilbert at Sharecast.com