British car manufacturing has reached its lowest November output in more than four decades, according to new data released on Friday by the Society of Motor Manufacturers and Traders (SMMT). The figures reveal the profound challenges facing the automotive sector as it navigates the transition to zero-emission vehicles whilst managing escalating costs.
Factory production figures for November showed a substantial decline, with only 64,216 units manufactured, representing a significant 30.1% decrease compared to the same period last year. This marked the lowest November output since 1980, highlighting the scale of the current industry downturn.
SMMT Chief Executive Mike Hawes addressed the decline, noting that whilst some reduction was anticipated due to extensive modifications at various manufacturing facilities, the sector faces mounting pressures both domestically and internationally. He emphasised that the industry has committed substantial investment towards new technologies, models, and production equipment.
The data revealed a particularly concerning trend in the electrified vehicle segment, despite the global automotive industry’s increasing focus on electrification. Production of battery electric, plug-in hybrid and hybrid electric vehicles experienced a sharp 45.5% decrease, with only 19,165 units manufactured in November. This output represented approximately one-third of total vehicle production.
In light of these challenges, the SMMT has renewed its call for government review of the ‘ZEV mandate’ regulations. The organisation warns that car manufacturers could face nearly £6 billion in combined discounts and compliance costs under current requirements.
The manufacturing downturn reflects the complex challenges facing British automotive manufacturers as they attempt to balance traditional production with the necessary transition to electric vehicles. This situation is further complicated by broader economic pressures and the substantial investment required to modernise production facilities.
These figures arrive at a critical time for the British automotive sector, as it attempts to maintain its competitive position in the global market whilst managing the fundamental transformation of its manufacturing capabilities. The significant decline in both traditional and electrified vehicle production suggests that the industry faces considerable hurdles in achieving its modernisation goals whilst maintaining production volumes.
The current situation raises important questions about the future of British car manufacturing and the effectiveness of existing policies designed to support the transition to electric vehicles. The substantial costs associated with the ZEV mandate, combined with declining production figures, indicate that the industry may require additional support or policy adjustments to successfully navigate this period of transformation.
This latest data from the SMMT provides a clear indication of the scale of challenges facing British car manufacturers as they work to adapt to changing market demands and regulatory requirements, whilst maintaining operational viability in an increasingly competitive global market.