Vehicle production declined as market shifts towards EVs

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New figures from Society of Motor Manufacturers and Traders (SMMT) show a decline in vehicle production, which SMMT puts down to “EV transformation and intense market pressure”.

In 2024, UK vehicle production failed to surpass one million units, with factories delivering a total of 905, 233 units (779,584 of these being cars, and 125,649 being commercial vehicles), which is 11.8 per cent lower than in 2023. SMMT emphasise that multiple factors impacted car production, such as “end of production for some long running models as factories retooled for EVs, weakness in key global markets, and a slowdown in the transition to electrification amid tough economic conditions.”

2024 was a year of serious decline in Briths car production, with car production falling by 13.9 per cent, output for the UK market down eight per cent to 176,019 units, and exports declining -15.5 per cent to 603,565 units.

As wholesale production declined, it was expected that battery electric (BEC), plug-in hybrid (PHEV) and hybrid (HEV) model output would also decline. Although production of electrified cars fell to 275,896 units, they still accounted for 35.4 per cent of overall output and the second highest on record. It is estimated that this decline will be fleeting, as £20 billion investment was announced in 2023 and a further billion £3.5 billion the following year to push the UK into transitioning to EVs.

Mike Hawes, SMMT chief executive, said: “Amid significant geopolitical and trade tensions, UK manufacturers are set on turning billion of pounds of investment into production reality, transforming factories to make new electric vehicles for sale around the world. Growing pains are inevitable, so the drop in volumes last year is not surprising. With new, exciting models and battery production on the horizon, the potential for growth is clear. Securing this future, however, requires industrial and trade strategies that deliver the competitive conditions essential for growth amidst an increasingly protectionist global environment.”