UK's July auto output falls as weak exports and shutdowns weigh, industry data shows

Aug 27 (Reuters) - British vehicle production fell 11.6% year-on-year in July as weaker exports and earlier summer maintenance shutdowns at some plants weighed on output, industry data showed on Thursday.

The decline comes as carmakers grapple with softer demand and intensifying global competition, with the Society of Motor Manufacturers and Traders (SMMT) urging the British government to improve competitiveness through changes to electric vehicle rules, lower energy costs and safeguards for automotive trade with Europe.

Total vehicle production fell to 63,655 units in July, SMMT said, with car output slipping 10.6% from a year earlier.

Overall British auto exports dropped 15.9% to 47,377 vehicles, as shipments to all major markets declined, including the European Union — Britain's largest export destination — China, the United States, Turkey and Japan.

British commercial vehicle production plunged 34.4% to 1,888 units, with deliveries to domestic customers and export markets down 49.6% and 18.5%, respectively, the data showed.

Electric and hybrid model manufacturing, however, rose 6.8% to 25,678 units during the month — the first increase of the year as electrified vehicles accounted for more than four in 10 cars built.

Less than two weeks ago, Britain set out a range of options that could ease the pressure on car manufacturers to switch new sales to zero-emission vehicles, launching a review of existing targets that gradually phase out new petrol and diesel cars.

"The rise in electrified vehicle production is encouraging, but long-term success depends on making the UK a more competitive place to make and sell vehicles," SMMT CEO Mike Hawes said in a statement.

As of July, UK factories have produced just under 450,000 cars and commercial vehicles in 2026, down 8.1% from a year earlier.

(Reporting by Ankita Bora in Bengaluru; Editing by Jonathan Ananda)