Britain’s automotive industry has experienced a decline in car production for the third consecutive month, according to recent data released by the Society of Motor Manufacturers and Traders. In May, the country’s car output decreased by 11.9 per cent compared to the same period last year, with a total of 69,652 vehicles rolling off production lines. This figure is in contrast to the 79,046 cars produced in May of the previous year.
The SMMT attributes this downturn to several factors, primarily the winding down of existing model production and the ongoing transition of manufacturing plants towards electric vehicle (EV) production. This shift in focus reflects the broader industry trend towards electrification and sustainable mobility solutions.
Despite the overall decline in production numbers, there is a silver lining in the form of increased electrified vehicle output. Electrified vehicles, which include fully electric models, plug-in hybrids, and full hybrids, accounted for nearly two-fifths (38 per cent) of all car production in May. This represents a 3 percentage point increase compared to May 2023, indicating a growing emphasis on electrification within the British automotive sector. In total, manufacturers produced 26,475 units of EVs during the month.
The rise in EV production is not surprising, given the significant investments made by major automotive players in the UK market. Companies like Nissan and Tata Motors (the owner of Jaguar Land Rover) have committed billions of pounds to bolster their EV production capabilities in the country. These investments align with the UK’s ambitious goal of achieving net-zero emissions by 2050.
Looking ahead to the UK general elections scheduled for July 4, the SMMT has outlined several priorities for the next government to support the automotive sector. These include:
1. Backing British manufacturing to ensure its continued growth and competitiveness.
2. Attracting green investment through a comprehensive industrial strategy.
3. Guaranteeing affordable and sustainable energy supplies to support manufacturing operations.
4. Developing new skills within the workforce to meet the evolving needs of the industry, particularly in relation to EV production.
These priorities underscore the importance of government support in facilitating the automotive industry’s transition towards electrification and maintaining the UK’s position as a key player in the global automotive market.
The current production figures, while showing a decline, also highlight the industry’s ongoing transformation. As more manufacturers shift their focus towards EVs and other electrified vehicles, it’s likely that production numbers will fluctuate in the short term. However, this transition is essential for the long-term sustainability and competitiveness of the UK’s automotive sector in an increasingly electrified global market.