Carmakers call on next government to support zero-emission shift amid output decline

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The UK car industry has set out key steps for the next government to support the sector as latest figures show a 7.0% fall in overall output for April.

Volumes of electrified vehicles were up a modest 0.1%, constrained by the transition of factories to new models and technology

A total of 61,820 cars rolled off UK production lines last month – down for the second month running, according to the Society of Motor Manufacturers and Traders (SMMT) as carmakers such as Nissan and JLR gear up for an electric future.

Output for the UK – at 14,021 units – rose 19.8% but failed to offset a 12.7% decline in production for overseas buyers to 47,799 units, with nearly eight in 10 cars made shipped to global markets. The EU took the majority of car exports (55.8%) followed by the US (15.2%), China (5.4%), Turkey (4.2%) and Australia (2.8%). Shipments to the US and Turkey rose, with those to the EU, China and Australia all experiencing double-digit declines.

Volumes of electrified vehicles – including battery electric, plug-in hybrid and hybrid – accounted for 40.5% of all production, up from 37.7%, with manufacturers producing a combined 25,031 units. The SMMT said the modest 0.1% rise on the previous year had been constrained by the transition of factories to new models and technology.

UK car manufacturing output is now down 0.8% on 2023 volumes in the year to date, with more than a quarter of a million (284,191) units produced. Exports have fallen 8.7% to 209,458 units, while production for the UK is up 31.0% to 74,733 units.

Mike Hawes, SMMT chief executive, said: “Another month of falling UK car production was expected given the significant transformation underway within factories as manufacturers retool to produce new models. Keeping this progress on track is essential and requires favourable industrial and market conditions. With a general election in a matter of weeks, the next government must ensure the conditions are right not just for the competitiveness of UK manufacturing, but for the investment required to transition the sector to a net zero future.”

Ahead of the general election, the SMMT is calling for the next government to adopt five key pledges set out in its Manifesto 2030 as part of a dedicated industrial strategy.

These include delivering low-cost zero-carbon energy, ensuring a skilled workforce fit for the future, securing free trade deals with existing and emerging markets, and backing the domestic market for new electric vehicles – measures seen as vital to bolster the sector’s competitiveness and drive economic growth and job prosperity across the country while delivering on environmental ambitions.

The latest independent production outlook expects UK car and light van production to fall 6.2% to some 940,000 units this year, before returning to growth in 2025. The outlook also forecasts that manufacturing will surpass a million units from 2026 before reaching 1.2 million later this decade.

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Natalie Middleton

Natalie has worked as a fleet journalist for over 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day.