Car and commercial vehicle production in the UK fell 17.7% to 78,012 units in January, amid challenging trade conditions and global uncertainty.
Car output fell 14.3% to 71,104 units, with CV volumes down 41.5% to 6,908 units, according to the new figures from the Society of Motor Manufacturers and Traders (SMMT).
The performance follows a bumper January last year, when car and CV output surged by 21.0% and 27.5% respectively.
The SMMT said the downturn reflects weakness in key markets, notably the EU, China and the UK itself, combined with planned model changeovers.
UK production of battery electric (BEV), plug-in hybrid (PHEV) and hybrid (HEV) vehicles increased 1.5% to 30,028 units, accounting for 42.2% of all cars made in January, the highest monthly performance since December 2022 (47.2%).
The lion’s share of overall car production (80.4%) was for export, although volumes slipped 9.2% to 57,140 units. Production for the UK market, meanwhile, fell 30.4% to 13,964 units.
The EU, the largest global market for British-built cars, took more than half (52.0%) of car exports, followed by the US (18.6%), China (6.2%), Turkey (3.5%) and Japan (3.4%). Shipments to the EU and China fell by 11.2% and 46.3%, while those to the US, Turkey and Japan all rose, up 12.4%, 36.9% and 8.1% respectively.
Export demand also continued to drive CV production, accounting for 61.7% of UK van, truck, taxi, bus and coach production. A total of 4,259 units were shipped overseas, a year-on-year decline of 46.6% with 97.1% destined for the EU. Volumes for the UK market also fell, down by 31.1% to 2,649 units. But the SMMT said performance must be set against the backdrop of a particularly strong January last year – which saw the best CV output since 2008.
The decline comes amid plant restructuring and slower-than-anticipated rollout of new models as manufacturers respond to softening demand in the UK and other key markets.
The auto sector is urging the Government to ensure the needs of the UK automotive sector are at the core of its forthcoming industrial and trade strategies.
It’s also calling for measures to ensure a healthy domestic market, especially for EVs – a key investment consideration – and quick release of the £2bn promised by government to boost the sector via the Automotive Transformation Fund.
Mike Hawes, SMMT chief executive, said: “UK vehicle producers face a perfect storm of global trade uncertainty, challenging manufacturing conditions and a market transition which is proving tougher than expected. The sector is doing all it can to keep production plans on track but needs government to ensure automotive is at the heart of its forthcoming industrial and trade strategies with promised funding invested as soon as possible.”
