Car production falls in August and cyber-attacks could make September a wash out

British car makers produced less cars in August compared to last year, in what is traditionally a quieter ‘summer shutdown’ month.

Car production fell 10.2 per cent last month, bringing an end to the two-month growth witnessed off the back of the UK’s trade deal with the US and higher demand for new models produced at home.

The Society of Motor Manufacturers and Traders figures published today recorded 37,072 cars rolling out of factories in August, down from 41,271 in the same month last year and 69,127 in July of this year.

The summer slump is inevitable, as factories plan summer shutdowns to enable maintenance and retooling.

August also continued the recent trend for heavy declines in commercial (CV) production, with a drop of 73.2 per cent to 1,621 units – driven by a consolidation of manufacturing operations at a major manufacturer. 

It follows on from July when CV production crashed 81.1 per cent. 

Combined UK vehicle production was down 18.2 per cent to a total of 38,693 units – the weakest performance since 1956. 

Car production fell 10.2% in August, a typically quiet time of the year when manufacturers retool and cover maintenance issues

August’s car production figures arrive before the cyberattack on the UK’s largest automotive employer, Jaguar Land Rover (JLR), can be reflected, with the effects not likely to be evident until September’s performance statistics. 

JLR has extended its factory shutdown to at least 1 October after cyber hackers broke into its computer systems at the end of August, leading to a potential collapse of its supply chain and £2bn in losses.

Nodding to this, Mike Hawes, SMMT Chief Executive, said about the past month’s results: ‘August is always a low volume month due to planned summer maintenance, but the focus is now on September’s performance, and the likely impact of the cyberattack at Britain’s biggest automotive employer. 

‘The sector is resilient, but SMMT is engaged with members and the government to understand what additional supportive measures may be needed.’

The SMMT says the overall fall in combined vehicle production illustrates the challenging environment facing UK automotive manufacturers, ‘with soft conditions in the sector’s largest market, the EU, significant cost pressures, model transitions and slow economic growth’. 

JLR has extended its factory shutdown to at least 1 October after cyber hackers broke into its computer systems at the end of August, leading to a potential collapse of its supply chain and £2bn in losses. The impact will likely be reflected in next months manufacturing figures

The number of electric cars being built in Britain rose by 40.9% to 16,830 units

There is good news for EV production though. 

The latest figures show that while overall car output fell, the number of electric cars being built in Britain rose by 40.9 per cent to 16,830 units.

Hybrid, plug-in hybrid and battery electric vehicles (BEVs) accounted for almost half (45.4 per cent) of the units produced in August – the second-best share of output for any single month.

In the year to date, factories have turned out more than 200,000 of these electrified vehicles, up 3.7 per cent on 2024, although total car output is down 5.9 per cent to 492,009 units. 

August continued the recent trend for heavy declines in commercial (CV) production, with a drop of 73.2% to 1,621 units

CV output year-to-date is down 54.4 per cent to 35,922 units. 

Car production for the UK market rose by 11.5 per cent to 7,162 units. I couldn’t however offset a 14.2 per cent fall in exports. 

In all, 29,910 cars were made for overseas customers in August – representing 80.7 per cent of output.