UK car production falls as electric vehicles come under “immense pressure”.

British car production fell sharply in October amid concerns from the industry about “strong pressure” on investment in building electric vehicles.

Production of all cars fell by more than 14,000 vehicles compared to last year, mainly due to a decline in exports due to weak demand, the Society of Motor Manufacturers and Traders (SMMT) said.

Production of electric and hybrid vehicles fell by a third compared to last year, due to weakening demand in Europe and factories retooling for new models.

The figures come after Vauxhall maker Stellantis announced this week it would close its van factory in Luton, partly due to rules introduced to speed up the transition to electric vehicles in the UK.

Additionally, last week Ford announced it would cut 800 jobs in the UK over the next three years due to difficult trading conditions, including intense competition and lower demand for electric vehicles (EVs).

SMMT chief executive Mike Hawes said: “These are deeply worrying times for the automotive industry, with massive investment in factories and new zero-emission products under huge pressure.”

Globally, demand for electric vehicles has slowed, he said, while manufacturers in the UK are struggling with “the toughest targets and fastest timeframes” without the necessary incentives for customers to boost demand.

Although electric car production fell for the eighth month in a row in October, electric car sales in the UK rose.

They accounted for one in five cars registered in October, although industry sources suggest this is largely due to unsustainable discounts.

There is increasing dispute between the government and industry over the plan to stop selling new petrol and diesel cars in the next few years.

Under the UK’s Zero Emission Vehicle (ZEV) mandate, manufacturers are currently required to sell a certain percentage of zero-emitting cars and vans before the sale of new petrol and diesel cars is banned in 2030.

In 2024, electric vehicles must account for 22% of an automaker’s car sales and 10% of van sales. This goal should increase.

For any sale outside the mandate, firms will be fined £15,000 – but they will also be able to buy “credits” from firms that can meet the mandate.

Business Minister Jonathan Reynolds said there would be a “fast-track” consultation on how the EV targets will be enforced.

However, he also reiterated Labour’s commitment to ending the sale of new petrol and diesel vehicles by 2030.

The closure of the Stellantis factory in Luton puts 1,100 jobs at risk.

Stellantis’ former UK production manager Mark Noble told the BBC his “disappointment, shock and anger” at the closure plans.

He said the site would be closed “for a number of reasons external to the factory”, including uncertainty over Brexit tariffs and the ZEV mandate.

He said the problems for Stellantis’ UK plants in Luton and Ellesmere Port “started with Brexit” because it “caused a lot of uncertainty”.

“When there are two UK factories exporting more than 80% of their production and the tariff confusion and ambiguity is really hurting the two factories.”

He added that the government’s ZEV mandate “needs to decide: is it a tax, a £6 billion tax on the car companies, or is it their mandate to go green?”

“You have to enable car manufacturers to achieve these goals,” he said.

Government adviser James Richardson, director of analysis at the Climate Change Committee, told the BBC that traditional car manufacturers risk being overtaken by new competitors.

“Companies don’t always realize how quickly these markets can change, and then they may fall behind,” he said.

He added that the industry “understands this – we don’t see any companies denying this – people are quick to bring new models to market and that is very important”.

However, Mr Richardson added that the ZEV mandate “really helps send the signal to companies that they need to act quickly or competitors will come in and take the market away from them.”