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UK vehicle production declines amid EV transition, market challenges

0 Comment(s)Print E-mail Xinhua, January 31, 2025
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LONDON, Jan. 30 (Xinhua) -- Britain's vehicle production fell by 11.8 percent in 2024, totaling 905,233 units, according to the Society of Motor Manufacturers and Traders (SMMT) on Thursday.

Car production experienced a significant drop of 13.9 percent, with 779,584 units produced. By contrast, commercial vehicle output rose by 4.0 percent to 125,649 units, marking its highest level since 2008.

"Multiple factors impacted car volumes, with the 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," said the SMMT.

December 2024 marked the tenth consecutive month of reduced car output, with a 27.1 percent drop to 45,022 units.

Exports, which constitute nearly 80 percent of British car production, fell by 15.5 percent to 603,565 units in 2024.

Volumes of the electrified vehicles, including battery electric, plug-in hybrid and hybrid vehicles, fell by 20.4 percent on the year to 275,896 units, accounting for 35.4 percent of overall output and the second highest on record.

"Amid significant geopolitical and trade tensions, UK manufacturers are set on turning billions of pounds of investment into production reality, transforming factories to make new electric vehicles for sale around the world," said SMMT Chief Executive Mike Hawes.

"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," he continued.

The SMMT anticipates that with improved market conditions and the successful launch of new models, British vehicle production could surpass one million units by 2028.

The automotive sector has called for the government to fast track industrial and trade strategies for automotive manufacturing, said the industrial body. Enditem

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