UK car production drops for fifth consecutive month

Britain’s car production fell for the fifth consecutive month in July, hurt by manufacturers shifting to new models and temporary disruptions in the supply chain, industry data showed on Thursday.

A total of 65,478 cars rolled off production in July, down 14.4 per cent from a year earlier, the Society of Motor Manufacturers and Traders (SMMT) said.

Production of electrified vehicles, which included fully electric models, plug-in hybrids and full hybrids, constituted 37.5 per cent of the total output, compared with 39.5 per cent a year ago.

“An ongoing degree of volatility is likely as the industry restructures to transition to zero-emission vehicle production,” SMMT chief executive Mike Hawes said in a statement.

Automakers Nissan (7201.T) and Tata Motors (TAMO.NS) have announced multi-billion-pound investments in EV production at their UK plants, bolstering the industry’s foreign investment and drive towards net zero emissions.

However, surging living and manufacturing costs have affected EV sales and production, prompting global automakers such as Ford (F.N), General Motors (GM.N) and Mercedes (MBGn.DE) to scale back their ambitious EV plans.

UK car production was up 14.8 per cent to 118,672 units to date in 2024, SMMT said.