British car production slows for eighth consecutive month

Car production in the UK has fallen for an eighth consecutive month, intensifying pressure on the industry as it struggles with the transition to an electric future.
Manufacturing output declined 15.3 per cent in October to 77,484 units, figures from the Society of Motor Manufacturers and Traders (SMMT) show, leaving output down by a tenth so far this year.
The latest downbeat figures for a manufacturing industry directly employing 198,000 people come amid turmoil in the market following plans by Vauxhall’s owner Stellantis to close its van-making plant in Luton, putting up to 1,100 jobs at risk and blaming the government’s zero emission vehicle mandate.
Mike Hawes, chief executive of the SMMT, said: “These are deeply concerning times for the automotive industry, with massive investments in plants and new zero emission products under intense pressure.”
Hawes said the slowdown in the global market, especially for electric vehicles, has hit production, with the UK particularly exposed “given we have arguably the toughest targets and most accelerated timeline but without the consumer incentives necessary to drive demand”.
On Tuesday Stellantis announced plans to consolidate its UK van manufacturing to create an all-electric hub at its Ellesmere Port plant in Cheshire and to invest £50 million.
The car group said the decision was made within the context of the “stringent” UK zero-emission vehicle mandate, under which at least 22 per cent of new cars sold by each manufacturer in the UK this year must be zero-emission, with the level rising each year.
Jonathan Reynolds, business secretary, told MPs yesterday that ministers had done “everything we possibly” could to prevent the closure of the plant and confirmed plans to review the mandate as part of a consultation on the government’s plan to ban the sale of new “purely petrol and diesel” cars by 2030.
Liam Byrne, chairman of the business select committee, also yesterday wrote to Reynolds with a series of questions, including what support can be offered locally and for consumer demand for electric vehicles, a concern highlighted by a number of car manufacturers.
The latest figures from the SMMT show the volume of battery electric, plug-in hybrid and hybrid electric cars fell by a third last month. The 24,719 units represented 31.9 per cent of the total output.
Overall, volumes for both domestic and export markets declined in October, down 4.7 per cent and 17.6 per cent, respectively, with eight in ten cars shipped abroad.
Hawes said: “The cost of stimulating that demand and complying with those targets is huge and, as we are seeing, unsustainable. Urgent action is therefore needed and we will work with government on its rapid review of the regulation and the development of an ambitious and comprehensive industrial strategy to assure our competitiveness.”