Car production falls amid slowdown in transition to electric vehicles
Car production falls amid slowdown in transition to electric vehicles
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A slowdown in the transition to electric vehicles contributed to a fall in UK car production last year, new figures show. The total was just over 900,000 in 2024, down by almost 12% on the previous year, according to the Society of Motor Manufacturers and Traders (SMMT).
There was a 20% decline in battery electric (BEV), plug-in hybrid (PHEV) and hybrid vehicle (HEV) output, which the SMMT said was expected, adding that they still accounted for over a third of production, the second highest on record. Factories turned out 779,584 cars and 125,649 commercial vehicles (CVs), a total of 905,233.
Car companies announced investment of more than £20 billion in electric vehicle (EV) production in 2023 and a further £3.5 billion in 2024 so the decline will be temporary, the SMMT predicted. Chief executive Mike Hawes said the industry was still going in “one direction” but added there was fierce competition to attract investment.
He called for moves to incentivise consumers to buy EVs as well as having a tariff-free enhanced trade partnership with the EU, which remains the biggest market for exports. Almost eight in 10 cars were destined for export last year, with 77.5% (467,937 units) shipped to the top three markets – the EU (54%), US (16.9%) and China (6.6%).
Exports to the EU and China were down by 24.3% and 21.8% respectively but those to the US rose 38.5%, which the SMMT said emphasised the need for supportive trading conditions across the Atlantic. CV production increased by 4% last year, the best since 2008, but the number of cars built was affected by issues including factories preparing to switch to EVs, weakness in global markets as well as a slowdown in the transition to electrification amid tough economic conditions, said the SMMT.
