Figures from the Society of Motor Manufacturers and Traders (SMMT) show UK car production fell 7.6% in the first half of 2024.
This drop was not unexpected; based on publicly announced investment commitments, for both public and private sectors, the UK automotive sector announced about £23.7 billion into electrified vehicle (battery electric, plug-in hybrid and hybrid) manufacturing last year.
Indeed, so far this year, electrified vehicle (EV) production accounted for 37.8% of all output, yet to change from last year.
The production outlook illustrates the effect of the EV transition on UK vehicle production, as structural changes mean overall production is projected to decline 9.3% this year. Output is projected to recover to 1.1 million units in 2028, when zero emission vehicles are expected to account for more than half of all UK car and van production.
According to SMMT, the right political, industrial and economic conditions could see the UK have cumulatively produced over nine million zero emission light vehicles by 2035. That total would overshoot current forecasts by 600,000.
Mike Hawes, SMMT chief executive, said: “The UK auto industry is moving at pace to build the next generation of electric vehicles – a transition that can be a growth engine for the entire British economy. The new government’s commitments to gigafactories, a decarbonised energy supply and a faster planning system will help boost our competitiveness and sustain employment in a sector that delivers well paid, skilled jobs nationwide.
Hawes was recently confirmed as a member of the Council for Net Zero Transport, launched on 6 June. He added: “Amid fierce global competition, however, industry and government must work quickly to deliver those commitments, creating an industrial strategy that enables the growth the economy craves.”
Indeed, the EU remains a crucial market for UK car makers, taking 55.4% of all exports this year to date. SMMT figures from the end of June showed that the UK is Europe’s second-biggest electric car market.
However, it will also be important for the UK’s EV chargepoint rollout to keep pace with uptake. This, along with the right policy and consumer and market incentives, is laid out in SMMT’s Vision 2035: Ready to Grow report, previously covered on Current±.
Beside light vehicles, the transition to electric trucks will also be a major factor in the UK’s transition to net zero; although heavy goods vehicles only make up 1% of vehicles on British roads, they are heavy emitters and contribute 20% of the country’s transport emissions.
