UK car production has slowed, according to industry figures, in the latest sign of a struggling sector.
For the eighth month in a row UK car manufacturing fell, according to data from the Society of Motor Manufacturers and Traders (SMMT).
October saw 15.3% fewer cars roll off factory lines than the same month a year ago, meaning 14,037 fewer cars were made last month compared to October 2023.
The impact of this reduced production could be visible in the last week from the announcement of 800 job cuts from Ford UK and Vauxhall‘s Luton plant closure.
Part of the blame for the closure was placed on government electric car sales targets by Stellantis, Vauxhall’s parent company.
Pressure has been on UK car producers to meet the government’s electric car mandate.
Under the mandate, financial penalties are currently levied against makers if zero-emission vehicles make up less than 22% of all sales. This will rise to 80% of all sales by 2030 and 100% by 2035.
But the sales have not lived up to the targets and are less than the forecasts made at the time the 2030 target was devised. Instead of the intended 22% of all car sales being fully electric at present just 18.7% of cars are.
Following complaints from the sector facing £1.8bn in fines for missing targets and £4bn in discounts to make electric vehicles (EVs) more appealing ending in April next year, as well as longstanding calls for more support, a review into the mandate was announced.
Today’s figures show production for both the UK and for export declined, with the biggest fall (17.6%) in vehicles leaving the country.
The vast majority of vehicles (80%) are shipped abroad with half going to Europe.
Car maker problems are not unique to the UK as European manufacturers are also facing weaker EV demand than anticipated and competition from Chinese imports.
High borrowing costs and more expensive raw materials have compounded the problem.
On Friday, Bosch – the world’s biggest car parts supplier – reported the loss of 5,500 jobs, predominantly in Germany.
Less than a month ago Volkswagen revealed plans to shut at least three factories in Germany and lay off tens of thousands of staff.
