Car production in the UK experienced a decline in August, marking the end of six months of consecutive year-on-year growth. The decrease in production is attributed to the annual summer shutdowns and planned factory upgrades. According to the Society of Motor Manufacturers and Traders (SMMT), a total of 45,052 cars were produced last month, a significant drop of 31,399 compared to July.

Compared to August of the previous year, there were 4,849 fewer cars produced, representing a decline of 9.7%. However, there was a silver lining amidst the overall decrease in production. Electrified vehicle manufacturing, which includes electric cars and various types of hybrids, continued its upward trend for the 14th consecutive month, with a year-on-year growth of 2.8%. These vehicles accounted for 36% of all cars produced in August.

One of the contributing factors to the decline in car production was the temporary closure and subsequent reopening of Stellantis’s Ellesmere Port factory. The facility underwent a £100 million refurbishment to enable the production of electric vans for brands such as Citroën, Fiat, Opel, Peugeot, and Vauxhall. The factory’s reopening last month marked its readiness for the production of next-generation vehicles.

The domestic market took the biggest hit in terms of car production, experiencing a year-on-year decline of 25.2% to 8,010 cars. Export numbers, which accounted for 82.2% of total output in August, also dipped by 5.5% to 37,042 cars.

Prior to August, the UK car industry had been enjoying six months of year-on-year growth. The production figures for the preceding months were as follows: 69,707 cars in February, 81,605 in March, 66,527 in April, 76,046 in May, 84,767 in June, and 76,451 in July. Overall, the UK has produced a total of 571,671 cars in 2023, marking an 11.8% increase compared to the same period last year. The first half of the year was particularly strong, with 450,168 cars produced.

Despite the decline in August, SMMT chief executive Mike Hawes reassured that it is not a cause for concern. He explained that car manufacturers took advantage of the summer holiday season to upgrade their plants, demonstrating their commitment to delivering the next generation of electric vehicles. Hawes highlighted the record number of electric vehicle models already being produced.

Hawes also used the rise in electrified vehicle production to call for an agreement on rules of origin between the UK and the EU. These manufacturing rules, set to come into force from January 1, 2024, have the potential to impact the competitiveness of electric vehicles in both markets. Hawes emphasized the need for business certainty and urged the UK government to provide concrete details on regulations compelling the sale of electric vehicles in Britain.

In conclusion, August marked a decline in car production in the UK after six months of consecutive year-on-year growth. The decrease can be attributed to annual summer shutdowns and planned factory upgrades. However, there was positive news in the form of continued growth in electrified vehicle manufacturing. Despite the decline, industry experts remain optimistic about the future of car production in the UK and emphasize the importance of securing agreements and regulations that support the growth of electric vehicles.