Figures from the Society of Motor Manufacturers and Traders (SMMT) show that UK car manufacturing output fell 15.3% in October, which marks the eighth consecutive month of decline.
Despite a 32.6% volume decline in the number of battery electric, plug-in hybrid, and hybrid electric cars manufactured, 24,719 were made, representing almost a third (31.9%) of total output. In September 2024 low emissions vehicles likewise made up 30.4% of all cars produced.
Manufacturers announced more than £20 billion worth of investment last year to drive their transition to EV production, but weak new car markets in both the UK and EU have downgraded expectations for UK car and light van production.
A previous report by the trade association showed that EVs increased their market share in the UK new car market in October as sales of BEVs totalled 29,802.
The SMMT says if planned UK zero emission model launches stay on track and consumer demand improves, there is potential to get above one million units in 2028. However, the electrification process has run some manufacturers into trouble.
US carmaker Ford announced this week that it is cutting 800 UK jobs, calling the rules of the UK government’s zero emissions vehicle (ZEV) mandate “unworkable”, despite having pushed for a harsher mandate in 2022.
As things currently stand, the ZEV mandate will see 80% of all new vehicles sales be of EVs, reaching 100% by 2035. This year, EVs must make up 22% of a company’s car sales and 10% of its van sales, a metric that manufacturers seem not to have had issue with. However, 28% of cars and 16% of vans must be electric by 2025, a proportion that manufacturers say is unattainable.
Meanwhile, the company that owns Vauxhall, Stellantis, announced it is shutting one of its two UK manufacturing sites. The company’s announcement said that the proposed closure, that will also create an all-electric, sustainable vehicle hub at its Ellesmere Port site in Cheshire through a £50 million investment, was “made within the context of the UK’s ZEV Mandate”.
Mike Hawes, SMMT chief executive, said that these are “deeply concerning” times for the automotive industry.
He continued: “Slowdowns in the global market – especially for EVs – are impacting production output, with the situation in the UK particularly acute given we have arguably the toughest targets and most accelerated timeline but without the consumer incentives necessary to drive demand.
“The cost of stimulating that demand and complying with those targets is huge and, as we are seeing, unsustainable. Urgent action is therefore needed and we will work with government on its rapid review of the regulation and the development of an ambitious and comprehensive Industrial Strategy to assure our competitiveness.”
