Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

UK car production drops by over 20% as automakers shift to electric vehicles

by October 24, 2024
October 24, 2024
UK car production drops by over 20% as automakers shift to electric vehicles

Car production in the UK fell by 20.6% year-on-year in September, marking a significant decline as manufacturers refocus their operations on electric vehicles (EVs) and face shrinking export volumes.

According to data from the Society of Motor Manufacturers and Traders (SMMT), output for both domestic and export markets dropped significantly, with production for the UK market falling by 20.8% and exports declining by 20.6%.

September 2022 had been a particularly strong month for UK car production, the best since 2020, making the year-on-year comparison more pronounced. Despite the September decline, production for the UK market has grown by 6.5% in the year to date. However, this has been offset by a sharp 14.4% drop in exports, resulting in an overall year-to-date production decline of 10.2%, with 592,862 units produced so far in 2024.

Overseas markets hit hard

The decline in export volumes has been felt across several key overseas markets. Shipments to China, one of the UK’s major car export destinations, dropped by 23.1% in September as the country grapples with an economic slowdown. While China’s GDP grew by 4.6% in the third quarter of 2024, this was below the government’s 5% target, impacting demand for imported goods such as vehicles. In response, Beijing has recently introduced measures aimed at bolstering growth in the world’s second-largest economy.

Exports to the EU, the UK’s largest export market for cars, also suffered, dropping by 28.6% in September to 26,825 units. This sharp fall in shipments to the EU coincides with weaker car sales across the bloc. According to the European Automobile Manufacturers’ Association, EU car sales fell by 18.3% in August, the lowest in three years, with major markets like Germany, France, and Italy experiencing double-digit declines.

However, there was a bright spot in the US market, where exports from the UK rose by 24.6% to 8,210 units in September, accounting for 16% of total UK car shipments.

Shift to electric vehicles

The fall in production has been largely attributed to carmakers retooling their factories to focus on the production of electric and hybrid vehicles, a shift driven by the UK’s goal of phasing out internal combustion engine vehicles by 2030. Nearly a third of all cars produced in the UK in September were either battery electric, plug-in hybrid, or hybrid models, reflecting the industry’s transition toward greener technologies.

Mike Hawes, chief executive of the SMMT, described the production declines as “short-term” and anticipated, but stressed that the car industry requires “the necessary industrial and market conditions” to stimulate growth. Hawes called on the government to use the forthcoming Autumn Budget and industrial strategy to bolster business confidence, attract investment, and secure the competitiveness of the UK’s automotive sector.

Maintaining the UK’s manufacturing stronghold

Despite the production slowdown, the automotive industry remains the UK’s largest exporter of manufactured goods. The sector increased its share of total exports to 13.9% in the first half of 2024, underlining its importance to the UK economy. As manufacturers continue to pivot towards zero-emission vehicles, they will rely heavily on supportive government policies and investment to maintain their global competitiveness and meet the rising demand for electric cars.

Read more:
UK car production drops by over 20% as automakers shift to electric vehicles

0
FacebookTwitterGoogle +Pinterest
previous post
Mike Ashley demands to take charge at Boohoo amid leadership crisis
next post
Why THC Gummies Is the Next Big Thing for Car Enthusiasts

You may also like

Dragons’ Den star told to pull down antivax...

April 17, 2023

5 things you may not be able to...

April 26, 2023

Side hustle entrepreneurs earn more than £22,000 a...

May 23, 2023

Finding your favourite casino game

December 14, 2023

HMRC brought in £5.8bn from investigations into individuals...

January 25, 2023

Saudi Arabia could be about to take majority...

December 12, 2023

Almost 60% believe they’ve been denied a promotion...

August 24, 2023

Spotify: The platform that changed the way we...

September 6, 2022

Barclays profits jump 19% as Trump-fuelled market volatility...

April 30, 2025

Asos optimistic about turnaround despite £380m loss

November 6, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,568)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved