UK Auto Production Plummets Amid Electric Vehicle Transition
In 2024, Britain’s vehicle manufacturing reached its lowest point in five years, dropping by 11.8% to 905,233 units. The figures reveal significant challenges during the ongoing transformation toward electric vehicles (EVs) and a subdued global demand.
Production Figures and Trends
The overall drop was primarily due to a 13.9% decline in car production, which fell to 779,584 units. In contrast, the output of commercial vehicles climbed by 4.0%, reaching 125,649 units—the highest level recorded since 2008. The reduction in car manufacturing can be largely attributed to the discontinuation of long-established internal combustion engine models and the extensive retooling of production facilities for EV manufacturing.
December proved to be exceptionally harsh for carmakers, with production dipping dramatically by 27.1% to just 45,022 units, thereby concluding a series of ten consecutive months of contraction.
Export Markets and Electric Vehicle Output
Despite nearly 78% of UK-made cars being exported, there was noticeable fragility in international demand. Export figures dropped by 24.3% to the European Union and by 21.8% to China, although shipments to the United States jumped by 38.5%. The EU, US, and China continue to be the primary export destinations, followed by Türkiye and Japan.
The production of electrified vehicles, including battery electric (BEV), plug-in hybrid (PHEV), and hybrid (HEV) models, also decreased by 20.4% to 275,896 units. These vehicles still comprised more than one-third of the total output, underlining the ongoing commitment to sustainable mobility even as the industry navigates short-term restructuring challenges and temporary operational disruptions.
Future Outlook and Industry Response
Since early 2023, the industry has benefited from over £23.5 billion (approximately $30 billion) in support dedicated to the EV transition, fueling optimism for recovery. Projections indicate that car and light van production could bounce back to around 839,000 units in 2025, potentially rising above one million units by 2028 and surpassing 1.1 million by 2030, provided that economic conditions improve and consumer interest in EVs accelerates.
Industry leaders are urging the government to implement a dedicated industrial strategy for advanced automotive manufacturing. They advocate for increased innovation support, targeted investment, improved skills development, measures to boost domestic demand, and favorable post-Brexit trade conditions. Securing tariff-free access to crucial markets and establishing agreements to secure vital minerals for EV production are seen as essential steps to maintain the UK’s position in a sector valued at over £100 billion (approximately $127 billion) in annual trade.
Without prompt policy intervention, there is mounting concern that the UK could lose its competitive edge in the global electric vehicle arena, potentially undermining future growth, employment opportunities, and climate change commitments.
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