Commercial vehicle (CV) production declined for the seventh month in a row, by 74.9% to 3,106 units, according to figures published today by the Society of Motor Manufacturers and Traders (SMMT).
Combined car and van production, therefore, was down by 30.9% in October with 62,116 units leaving factories.
The SMMT said the figures reflected the ongoing impact on volumes following manufacturer consolidating operations into the North West.
Meanwhile, overall UK vehicle production fell in October, down 23.8%.
59,010 units left factory gates – 18,474 fewer than in the same month last year – as a large automotive employer began its phased restart of operations after a cyber incident forced a pause in production.
Following the recent trend, almost half the cars (46.2%) made in the month were either battery electric, plug-in hybrid or hybrid, with volumes up 10.4% to 27,287 units.
Overall, car production for the UK market fell by 10.6% to 13,785 units, while output for export declined 27.1%.
45,225 cars were produced for global markets – representing more than three quarters of total output – with the EU, US, Turkey, China and Japan the top five export markets.
Shipments to the EU, US and Japan all fell, while those to Turkey and China rose.
The news followed the Budget in which the Chancellor announced a number of measures, including a further £1.5bn in automotive transformation funding, and the deferral of regulation to end critical employee car ownership schemes (ECOS) into the next Parliament – a move the industry had warned could lead to annual losses of £1bn and put up to 5,000 jobs at stake.
It also came after Government published a consultation on its proposed British Industrial Competitiveness Scheme (BICS), which should bring down energy costs for manufacturers.
There was news of a £1.3bn top-up to the Electric Car Grant and changes to the VED expensive car supplement, reducing the number of EVs that will be subject to the higher tax.
However, the SMMT said the introduction of a pay-per-mile EV tax (eVED) would undermine the impact of those supportive EV measures, reducing demand for the very vehicles manufacturers are compelled to sell.
This, in turn, will further reduce the UK’s investment appeal just as it strives to attract new manufacturing operations, given the Industrial Strategy’s ambition to boost vehicle output to 1.3 million units by 2035.
So far this year, UK car and van manufacturers have turned out a total of 644,366 units, representing a 17% fall on the same period in 2024.
However, the latest independent production outlook expects growth to return in 2026 with a total of 828,000 cars and vans anticipated to be made next year, driven by new electric car models coming into production – with the potential to reach some 1m units by the end of this decade if the right conditions are in place.
Mike Hawes, chief executive of the SMMT, said: “Another difficult month for UK vehicle production as the impact of the earlier cyber attack continued to be felt.
“Growth is on the horizon, however, and Government has recognised the automotive industry as a pillar of national strategic importance, backing it with an industrial strategy and additional £1.5 billion to drive manufacturing competitiveness.
“Investment competitiveness also depends on a healthy domestic market, however, notably for EVs, and introducing a new electric Vehicle Excise Duty is the wrong measure at the wrong time.
“This new tax will undermine demand, so government must work with industry to reduce the cost of compliance and protect the UK’s investment appeal.”
