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Car production in the UK fell for the eighth month in a row as manufacturers battle with public reluctance to buy electric cars.
The poor figures come as car makers warn forthcoming fines for producing too many petrol and diesel cars could lead to more factory closures after Vauxhall’s owner said its Luton plant will close.
Britain produced 15 per cent fewer cars in October than a year ago with 77,484 vehicles rolling off production lines, according to the Society of Motor Manufacturers and Traders (SMMT).
Mike Hawes, SMMT chief executive, said: “These are deeply concerning times for the automotive industry, with massive investments in plants and new zero-emission products under intense pressure.”
The UK exports most of the cars it makes, with Nissan’s plant supplying Europe, and Britain’s luxury output from Bentley and Rolls-Royce being shipped around the world.
Mr Hawes added: “Slowdowns in the global market – especially for electric vehicles (EVs) – are impacting production output, with the situation in the UK particularly acute given we have arguably the toughest targets and most accelerated timeline but without the consumer incentives necessary to drive demand.”
The industry is lobbying for weaker rules on EV production. Currently, car makers are expected to make 22 per cent of their cars electric.
The government has indicated it may give car makers more time to hit the targets. Car makers say the 22 per cent target is about twice the rate consumers are buying the vehicles if they are profitably priced.
Most cars in the UK are made at plants owned by Nissan, Jaguar Land Rover, Toyota and Mini. But there are also lower-volume but high-end plants owned by Lotus, Rolls-Royce, Bentley and Aston Martin. Together the industry employs 198,000 people, plus many more at suppliers.
October’s decline was hit most by export orders, which fell 17.6 per cent, while domestic-bound units fell by 4.7 per cent.
Part of the decline is down to production lines being halted to convert them to electric car making.
Car makers have £20bn of investments planned to make EVs.
While models made to ship to the EU dived by almost a third, export models to the US almost doubled as American buyers aimed to beat the expected tariffs on imports that incoming president Donald Trump plans.
Overall, 32 per cent of cars made in Britain were either battery-powered, a hybrid or a plug-in hybrid.
Source: independent.co.uk
