UK Auto Production Plunges 31% as Cyberattack and Weak Exports Bite

Core Insights - UK automotive production experienced a significant decline in October, with total output of cars and commercial vehicles falling 30.9% year-on-year to 62,116 units, attributed to a major cyber incident and structural pressures in the sector [1] Production Data - Car production decreased by 23.8% to 59,010 units, falling short of October 2024 levels by 18,474 vehicles. Domestic market output fell 10.6% to 13,785 units, while exports dropped 27.1% to 45,225 units, with notable declines in shipments to the EU, US, and Japan, although exports to Türkiye and China increased [2] - Commercial vehicle manufacturing saw a dramatic decline of 74.9% to 3,106 units, marking the seventh consecutive monthly drop, primarily due to a major manufacturer consolidating operations in the North West [3] Electrified Vehicle Production - Despite the overall decline, production of electrified vehicles rose, with nearly half (46.2%) of all cars produced in October being battery-electric, plug-in hybrid, or hybrid models. Electrified output increased by 10.4% to 27,287 units, indicating a shift towards EV manufacturing [4] Government Measures - The UK government's Autumn Budget included a £1.5 billion increase in support for the Automotive Transformation Fund, deferral of regulations on employee car ownership schemes, and a consultation on a new British Industrial Competitiveness Scheme aimed at reducing industrial energy costs [5] - However, industry leaders expressed concerns that new tax measures, including a pay-per-mile electric vehicle tax (eVED), could undermine the appeal of the UK for EV investment, potentially suppressing demand for EVs at a critical time [6][7]