UK vehicle production fell by 35.9% in September after a major cyber attack halted operations at the country’s largest carmaker and restructuring continued to affect the commercial vehicle sector.
The SMMT said car output dropped 27.1% year on year to 51,090 units, with the decline largely driven by the suspension of activity at Britain’s biggest automotive employer.
Several other manufacturers recorded growth as the industry continues to recover from pandemic era disruption.
Electrified models, including battery electric, plug in hybrid and hybrid cars, performed strongly, rising 14.7% to 24,445 units and accounting for 47.8% of September’s output.
Production for the domestic market fell 34.1% and exports were down 24.5%, with the EU, US, Turkey, Japan and South Korea remaining key destinations.
Commercial vehicle production saw an even steeper fall. Output dropped 77.9% to 3,229 units, the sixth monthly decline in a row. The SMMT said the reduction reflected the consolidation of operations by a major manufacturer as factories prepare for new model launches. Combined car and van output reached 54,319 units.
The figures were released ahead of the Autumn Budget on 26 November, prompting renewed calls for the government to support the automotive sector.
The industry has urged the Chancellor to align fiscal policy with the Modern Industrial Strategy and reverse plans to end employee car ownership schemes. Under the proposals, ECOS vehicles would be reclassified and subject to company car tax, a change the SMMT warns would have significant consequences for manufacturers and employees.
SMMT analysis suggests the reform could affect 60,000 automotive workers who rely on ECOS vehicles for commuting, cut new car sales by 80,000 a year and reduce UK production by up to 20,000 units. The organisation estimates the change could cost the economy £1bn, as well as put 5,000 manufacturing jobs at risk and create a £500m revenue shortfall for the Treasury.
Mike Hawes, SMMT chief executive, said: “September’s performance comes as no surprise given the total loss of production at Britain’s biggest automotive employer following a cyber incident. While the situation has improved, the sector remains under immense pressure.”
The Industrial Strategy launched in June aimed to restore UK output to 1.3m units a year.
“The move to scrap ECOS immediately puts that ambition in doubt and must be reversed given the damage it will inflict on the sector and exchequer revenues.”
UK factories have built 582,250 cars and vans so far this year, down 15.2% on the same period in 2024.
The SMMT is calling for rapid action to improve competitiveness, including retaining ECOS for manufacturing employees, accelerating the British Industrial Competitiveness Scheme to 2026 and reforming skills and supply chain support programmes.
