Car production declines

UK (Commonwealth) _ Figures from the Society of Motor Manufacturers & Traders (SMMT) show that production of electric cars, which includes BEVS, plug-in hybrids, and hybrids, totaled 26,475 units, up three percentage points to 38% of all output.

Production increased 9.7% for the UK market to 17,754 units, however this was insufficient to make up for a -17.4% decrease in export sales to 51,898 units. Despite the decline, over three quarters (74.5%) of all automobiles produced in the UK were sold to other countries, with the EU receiving the majority of shipments (52.5%), followed by the US (18.2%) and Turkey (8.0%).

The chief executive of the SMMT, Mike Hawes, stated that as automakers revamp for new electric models, there is a massive revolution taking place in UK auto facilities.

But in the face of fierce global competition for investment in environmentally friendly cars, the UK must make sure it offers both new and existing investors an alluring package and the best production circumstances.

A long-term industrial plan that unites the government, all stakeholders, and the sector in the quest of green and sustainable growth is crucial to this. There has been a slump in UK automobile manufacturing attributed to factories getting ready for the next generation of electric cars, or EVs.

According to the Society of Motor Manufacturers and Traders (SMMT), April’s manufacturing production dropped by 7% to 61,820 units, marking the second consecutive month of declines. According to Mike Hawes, the chief executive of the SMMT, another month of declining vehicle production in the UK was anticipated because of the “significant transformation” that factories are going through as automakers retool to build new models.

He said, “It is imperative that we maintain this progress on course, which calls for favorable industrial and market conditions.”

In the weeks leading up to the general election, the next government needs to make sure that the investment needed to move the manufacturing sector toward a net zero future, as well as the competitiveness of UK manufacturing, are both supported.

Production for foreign clients fell by 12.7% to 47,799 units, with nearly eight out of ten cars being transported to international markets. Despite a 19.8% increase in output for the UK, at 14,021 units, it was unable to counterbalance this decrease.

The top four countries for automobile exports were the US (15.2%), Australia (2.8%), China (5.4%), Turkey (4.2%), and the EU (55.8%). Shipments to the EU, China, and Australia all saw double-digit decreases, while shipments to the US and Turkey increased.

Battery electric, plug-in hybrid, and hybrid car volumes accounted for 40.5% of all vehicle manufacturing, an increase from 37.7%. A 0.1% increase over the previous year, manufacturers produced a total of 25,031 units; however, the SMMT attributes this to factory shifts to new models and technologies.

SMMT is urging the next administration to implement the five major commitments outlined in its Manifesto 2030 as part of a focused industrial policy ahead of the general election.

Delivering affordable, carbon-free energy, making sure that the labor force is prepared for the future, negotiating free trade agreements with developed and developing nations, and supporting the home market for new electric cars are a few of these.

According to the SMMT, taking this action would increase the industry’s competitiveness, fulfill environmental goals, and spur economic growth and employment prosperity nationwide due to the significance of automobile manufacturing facilities in the region.

With more over a quarter of a million (284,191) cars manufactured so far this year, UK auto manufacturing output is down 0.8% from 2023 volumes. While UK output is up 31% to 74,733 units, exports have down 8.7% to 209,458 units.

According to the most recent independent production outlook, UK car and light van production is predicted to decrease 6.2% to about 940,000 units this year, then expand again in 2025, topping one million units from 2026, and reach 1.2 million units later this decade.

June 12 and 13 saw the UK’s most prestigious fleet test driving event, presented by Fleet News. Hundreds of fleet decision-makers and leasing business stakeholders had the opportunity to use more than 30 miles of roads and tracks with a variety of surfaces and technical characteristics at the event at Millbrook Proving Ground in Bedfordshire.