UK vehicle production fell sharply in February, dropping 17.2% to 68,061 units, according to the Society of Motor Manufacturers and Traders (SMMT), as weak export demand, model changeovers and restructuring at a major commercial vehicle plant all took their toll.
Car output declined 10.7% to 65,885 units, while commercial vehicle production collapsed 74% to just 2,176 units. Despite the overall fall, overseas demand still accounted for 80% of total production.
The picture was mixed on exports. Car shipments to the EU, the industry's largest market, taking 63.6% of exports, actually rose 5.3%. But demand elsewhere fell sharply, with the US down 34.3%, China off 66.4%, and Japan slipping 6.8%. Total car exports fell 11.5% to 53,140 units, while CV exports dropped 65.1% to 1,306 units.
At home, production for UK buyers also weakened. Car output for the domestic market fell 7.5% to 12,745 units, while CV production for UK customers dropped 81.2% to just 870 units.
Electrified vehicles, including battery electric, plug-in hybrid and hybrid cars, dipped 2.8% to 26,629 units, though they still represented 40.4% of total car output, underlining how far the industry's shift away from combustion engines has already progressed.
The industry now faces a fresh set of headwinds. Proposed EU rules under the Industrial Accelerator Act could affect UK-built vehicles and components, with potential knock-on effects for trade flows between the UK and Europe.
SMMT chief executive Mike Hawes said the figures made for uncomfortable reading, and warned that they didn't yet capture the impact of the crisis in the Middle East. "Another decline for UK vehicle production and exports is extremely worrying, given these figures pre-date the crisis in the Middle East," he said. "While the sector has made efforts to build resilience into its logistics and supply chains post Covid, the conflict adds further strain."
Hawes called on the government to act, urging a focus on cutting energy costs, backing domestic suppliers, supporting the home market and securing what he described as "free and fair trade with Europe."