UK Auto Production Dips Below One Million Amid EV Shift
In 2024, Britain’s vehicle manufacturing reached a five-year low, with total output plummeting to 905,233 units. The decline reflects the challenges the industry faces as it transitions from traditional internal combustion engines to electric vehicles, compounded by softer global demand.
The figures, released by the national motor trade organization, indicate that car production fell by 13.9% to 779,584 units, while commercial vehicle output saw a modest increase of 4% to 125,649 units—the highest level since 2008. This downturn arises partly from the gradual discontinuation of older combustion models, significant retooling efforts at factories to accommodate electric vehicle production, and an overall economic slowdown affecting consumer spending.
The final month of the year was particularly tough for manufacturers, with December’s production dropping by 27.1% to just 45,022 vehicles. Despite nearly 78% of vehicles being destined for export markets in 2024, shipments to key economies such as the EU and China declined by 24.3% and 21.8% respectively, while exports to the United States experienced a notable 38.5% rise. The primary export destinations remain the EU, US, and China, followed by Türkiye and Japan.
Production of electrified vehicles—which includes battery electric, plug-in hybrid, and hybrid models—fell 20.4% to 275,896 units, although they still comprised over one-third of overall output. This reduction was largely anticipated amid extensive plant reconfigurations and temporary disruptions as manufacturers adapt to new production standards for future EV models.
With investments surpassing £23.5 billion since the beginning of 2023 to bolster the electric vehicle transition, the industry remains hopeful about a recovery. Projections suggest that car and light van production could rebound to approximately 839,000 units in 2025, potentially exceeding one million units by 2028 and reaching over 1.1 million by 2030—assuming that economic conditions stabilize and consumer interest in electric vehicles accelerates.
Industry experts emphasize the importance of a dedicated government strategy to support advanced automotive manufacturing. They call for policies that foster innovation, investment, and skills development, alongside measures to stimulate domestic demand and secure favorable post-Brexit trade arrangements. Securing tariff-free trade deals and agreements on essential minerals for EV production are also seen as crucial to maintaining the UK’s competitive edge in this sector.
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