Car manufacturing fell for the sixth month in a row, as UK factories continue to shift to producing electric vehicles.

The latest industry figures show new vehicle production fell by 8.4 per cent in August.

The declining trend is due to factories winding down production of key models and retooling for new, mainly electric, production.

However, the Society of Motor Manufacturers and Traders has said the decline is also due to August being a 'conventionally a low output month due to summer shutdowns'.

Vehicle production fell by 3,781 units during August as 41,271 new cars rolled off production lines – an 8.4 per cent change on August 2023.

August production for the home market dropped by -19.8 per cent as exports declined by a more modest -5.9 per cent.

In the year to date, UK car production is down -8.5 per cent at 522,823 units as the industry continues to transition to electric car production. 

Output for the UK market is up 12.3 per cent in the year to date despite August's domestic decline, while exports fell 13.6 per cent. 

The automotive sector recently received £24billion of investment pledges last year, which the SMMT said put the UK car industry 'back in the game'.

Jaguar Land Rover, Tata, Nissan and BMW all made announcements, with Nissan alone investing £2billion in producing two EVs at its Sunderland plant.

Electrified (battery electric, plug-in hybrid and hybrid) production for the month fell by -25.9 per cent, leading to a fall in share of output to 29.6 per cent.

But this is expected to reverse in the longer term as new models come on the market. 

There is a near-constant influx, with models ranging from the cheapest new EV - the Dacia Spring - to the new seven-seater Peugeot 5008 or the luxury Porsche Macan EV.

Mike Hawes, SMMT chief executive, said: 'With the traditional summer shutdowns and factories prepping to switch to new models, August was always going to be a quieter month for output. The sector remains optimistic about a return to growth, however, with record levels of investment announced last year.'

Hawes called on the Chancellor to 'demonstrate that it backs auto' in the forthcoming Autumn Budget and to present 'a blueprint with its proposals for cheaper, green energy, skills investment and the cultivation of heathy markets here and abroad'.

He added that the UK needs this investment to 'maintain its competitiveness' and 'enable the industry to drive economic growth in every part of the country'.