UK car production hits historic lows as CV output plummets

UK car and commercial vehicle (CV) production slumped in April, marking the weakest month for the sector since 1952- bar the Covid-hit April of 2020 - according to new data released by the Society of Motor Manufacturers and Traders (SMMT).

Total output fell by 15.8% year-on-year to 59,203 units, capping off the lowest start to the year for UK automotive manufacturing since 2009.

The decline was particularly stark for commercial vehicles, with output plunging 68.6% to just 2,669 units, driven largely by a plant closure and easing demand for new heavy goods vehicles.

Car production also dipped, falling 8.6% to 56,534 units, a result of fewer production days due to the late Easter holiday, model changeovers, and weakening demand in key export markets.

Car exports fell 10.1%, with shipments to the EU - still the UK’s largest overseas market - down 19.1%, and exports to the US falling 2.7%. Despite these declines, the EU accounted for more than half of all car exports, and the US received 16.5%.

In contrast, car exports to China surged by 44%, and shipments to Turkey rose 31.2%, offering a rare bright spot in an otherwise bleak export picture.

Commercial vehicle exports fared even worse, tumbling 75.8%, largely due to a 78.9% drop in deliveries to the EU, which nonetheless remained the dominant market for UK-built CVs, receiving 84.9% of all exports. CV production for the UK domestic market also contracted sharply, down 54.6%.

With output levels falling to historic lows, industry leaders are urging the government to act swiftly. The SMMT is calling for the imminent release of a long-awaited industrial strategy, which it says must include bold measures to enhance competitiveness and attract investment.

Mike Hawes, SMMT chief executive, said: “With automotive manufacturing experiencing its toughest start to the year since 2009, urgent action is needed to boost domestic demand and our international competitiveness.

“The government has acknowledged the sector’s importance by securing improved trade terms with the US, EU, and India. Now, to truly capitalise on these opportunities, we need a comprehensive and innovative long-term industrial strategy.

“Get this right, and the rewards - jobs, growth, and progress towards decarbonisation - will be felt across the UK.”