UK car production eases in August

UK car production fell in August, industry data showed on Thursday, putting the brakes on six months of growth.

According to the Society of Motor Manufacturers and Traders, car production fell 9.7% to 45,052 units last month. Within that, production for the home market was down 25.2%, while output for exports eased 5.5%.

Combined volumes of electrified vehicles nudged higher, however, up 2.8% at 16,511.

Car production had been ticking up for most of the year, as supply chain constraints eased and demand improved.

However, the SMMT said last month’s decline was "not a cause for concern", and was primarily caused by planned maintenance and upgrades.

Mike Hawes, chief executive of the trade body, said: "After six straight months of growth, a decline in UK car output in what is always the smallest and most variable volume month is not a cause for concern.

"With manufacturers taking advantage of the summer holiday season to upgrade their plants, this is part of an ongoing commitment to deliver the next generation of electric vehicles.

"To secure future investment, however, we need business certainty, not least a UK-EU agreement to delay tougher rules of origin that would damage the competitiveness of electric vehicles in both the European and British markets."

Earlier this month, prime minister Rishi Sunak scrapped a number of key environmental pledges, including delaying the ban on the sale of new petrol and diesel cars by five years to 2035.

The car industry hit out at the move, with US giant Ford arguing that relaxing the deadline undermined "ambition, commitment and consistency". The SMMT said consumers needed a "clear consistent message" from government if the switch to zero emission mobility was to succeed.