Car production has not performed worse in 38 years. Not since 1980 have so few cars been built in England. Not even though more car brands are building cars in the country.
Car production in the UK is now at its lowest level since November 1980.
According to the latest figures from the Society of Motor Manufacturers and Traders (SMMT ), just 64,216 cars were produced in November 2024. That's a drop of 30.1 percent compared to the same month last year. Or 27,711 fewer cars.
This is the ninth consecutive month that car production in the UK has fallen. The industry points to several reasons for the decline, including strategic product decisions, unstable global markets and planning issues. The latter is due, among other things, to last year's production figures being unusually high due to recovery from supply chain problems in the wake of the coronavirus pandemic.
The declining production levels are part of a broader trend across the industry. Many factories have adjusted their production as a result of changing demand and the transition to new technologies. A political goal to make electric cars the only option also plays a role. Read more about it here .
The global car market has been affected by an economic slowdown that has caused consumers to postpone car purchases, both new and used.
Added to this are challenges in obtaining enough microchips, something that continues to plague car production worldwide. Although these problems are not new, the duration has caught several car brands by surprise.
British car manufacturers are also dealing with the side effects of Brexit. Higher costs and more complex logistics have affected car brands' exports.
Exports accounted for 78 percent of all car production in November. This is actually a bit higher than normal. But the figure must also be seen in relation to the low number of cars.
The plans to phase out the sale of petrol and diesel cars by 2035 could also change the situation for British car brands quite significantly.
In fact, several of the car brands that have cars built in England believe that they will not be able to cope without support. This is especially something Ford says about electric cars.
Whether England can maintain its position as a major player in the global automotive sector depends on its ability to adapt to these challenges. Several car brands agree. In fact, they are warning that thousands of jobs could be lost. Read more about it here .
