UK car manufacturing experienced a sharp decline in October, with production figures plummeting by 24% compared to the same period last year. The primary driver behind this downturn was a crippling cyberattack targeting Jaguar Land Rover (JLR), the country’s largest automotive employer, which disrupted operations for over a month.
JLR Production Halt: The Immediate Impact
JLR was struck by the cyberattack on August 31st, forcing an immediate production standstill. Operations didn’t resume fully until mid-October, leaving key facilities like the Range Rover plant in Solihull and the Halewood plant (producing Evoque and Discovery Sport models) operating at significantly reduced capacity. The result was a total UK car output of just 59,010 units in October – a drop of 18,474 vehicles from the previous year.
Broader Industry Trends & Year-to-Date Figures
The JLR disruption highlights the vulnerability of modern manufacturing to cyber threats. While the incident was exceptional, it underscores broader challenges facing the UK automotive sector. Year-to-date production figures show a total of 602,109 cars built, down from over 670,000 at this point last year. The industry’s reliance on interconnected systems makes it an attractive target for attackers, and the consequences can be severe, as demonstrated by this incident.
Government Response & Future Policy Concerns
The Society of Motor Manufacturers and Traders (SMMT) acknowledges the short-term difficulties but remains optimistic, citing government initiatives like a new £1.5 billion automotive innovation fund. However, industry leaders warn that new policies could undermine progress.
Specifically, a planned pay-per-mile tax on plug-in hybrids and electric vehicles (EVs), set to take effect in 2028, is drawing strong criticism from the SMMT. The organization argues this tax will discourage EV adoption and harm domestic manufacturing. As Mike Hawes, SMMT boss, stated, “Investment competitiveness also depends on a healthy domestic market… introducing a new electric vehicle excise duty is the wrong measure at the wrong time.”
The Bigger Picture
The UK automotive industry is at a critical juncture. While the government aims to position the sector as a strategic national asset, policies like the upcoming EV tax threaten to stifle growth. The combination of cyber threats, supply chain disruptions, and now potentially counterproductive tax measures creates a complex environment for manufacturers.
The sector’s future hinges on balancing innovation with pragmatic economic policies. Until then, UK car production will remain subject to volatility driven by both external attacks and internal policy decisions.
