UK CAR output slumped for the eighth consecutive month in October, leading the industry’s trade group to warn of further deterioration in the outlook for automakers.
Production dropped 15 per cent last month from a year ago, according to the Society of Motor Manufacturers and Traders (SMMT). The group said on Thursday (Nov 28) that independent forecaster AutoAnalysis lowered its 2024 and 2025 projections for car and light van output by 12 per cent and 16 per cent from what it was expecting this time last year.
The UK government this week pledged more support for the industry and to consult with carmakers on an electric vehicle sales mandate that it said is not working as intended. Business secretary Jonathan Reynolds offered the concessions shortly after Stellantis announced plans to close one of its van factories in the country that’s produced Vauxhalls for 120 years.
“These are deeply concerning times for the automotive industry, with massive investments in plants and new zero-emission products under intense pressure,” Mike Hawes, SMMT’s chief executive officer, said. “We will work with the government on its rapid review of the regulation and the development of an ambitious and comprehensive industrial strategy to assure our competitiveness.”
AutoAnalysis now sees automakers producing 910,805 cars and light vans this year. As at November 2023, its forecast was for almost one million.
The forecaster is projecting output will fall another 8 per cent next year, to 838,665 cars and vans. A year ago, it was expecting 995,250 units. BLOOMBERG
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