The number of vehicles produced in the UK fell by 17 per cent last month as demand for new cars dropped with drivers less interested in buying new models.
The decline was highlighted in the latest data from the Society of Motor Manufacturers and Traders, which revealed that UK car makers produced 71,104 cars and 6,908 commercial vehicles.
The SMMT attributed the drop in numbers to weakness surrounding important markets such as the EU, China and the UK, while also experiencing less interest from drivers.
While production numbers fell, there were increases in the battery electric, plug-in hybrid and hybrid vehicles with a jump of 1.5 per cent to 30,028 units, accounting for 42.2 per cent of all cars made in January.
Do you have a story you'd like to share? Get in touch by emailingmotoring@gbnews.uk
UK car production fell 17 per cent in February compared to January
PA
The report revealed that four out of five cars built in the UK were exported, with the EU remaining the most important region, taking just over half of exports (52 per cent). This was followed by the US (18.6 per cent), China (6.2 per cent), Turkey (3.5 per cent) and Japan (3.4 per cent).
The SMMT noted how the "slower than expected" rollout of new models from manufacturers was also a key issue which caused softening demand in the UK and other key markets.
SMMT chief executive Mike Hawes said: "UK vehicle producers face a perfect storm of global trade uncertainty, challenging manufacturing conditions and a market transition which is proving tougher than expected.
"The sector is doing all it can to keep production plans on track but needs the Government to ensure automotive is at the heart of its forthcoming industrial and trade strategies, with promised funding invested as soon as possible.
"Doing so will help ensure our competitiveness and safeguard the billions of pounds of investment, jobs and economic growth which is now at stake."
Meanwhile, car and commercial vehicle production fell 17.7 per cent to 78,012 units in January compared with "bumper" first-month figures for both sectors last year, said the SMMT.
To combat this, the SMMT has urged the Government to ensure the needs of the UK automotive sector are at the core of its industrial and trade strategies.
This includes ensuring that there is continued investment in electric cars, which the majority of UK manufacturers have been focusing on.
The growing investment in EVs follows the Zero Emission Vehicle mandate which requires all car manufacturers to have at least 28 per cent of new car sales be electric by the end of the year before moving to 80 per cent in 2030.
As part of the mandate, manufacturers can face a hefty £15,000 fine per non-compliant vehicle, which has helped incentivise the ramp-up of EV production. But despite more electric cars being rolled out, there is still a lack of demand from drivers who remain hesitant to switch away from petrol and diesel models.
A Government spokesperson said: "We recognise the global challenges car manufacturers face, and we are working closely with businesses across the sector to ensure the UK remains a top destination for investment in automotive manufacturing.
"This Government will continue to support our world-leading automotive industry, and its continued success has a big role to play in our mission to grow the economy."
LATEST DEVELOPMENTS:
- New driving law could see millions of motorists' information handed over to police - 'Threaten privacy'
- Drivers demand urgent action from Labour to address dazzling LED headlights as thousands back petition
- Electric car owners warned of huge price rises in April following Ofgem ruling - 'Drive up monthly bills'
The SMMT has warned more support will be needed for UK manufacturers operating in the country
SMMT"We've already backed the sector with over £300 million to drive uptake of electric vehicles and £2billion to support the transition of domestic manufacturing announced in the budget."
