Best first quarter for UK commercial vehicle production since 2008

UK commercial vehicle (CV) output rose by 27.4% in the first quarter of 2024, the best Q1 performance since 2008, according to new figures from the Society of Motor Manufacturers and Traders (SMMT).

It reports that 32,626 vans, trucks, taxis, buses and coaches left UK factories, up 18.6% on pre-pandemic 2019 volumes, with demand driven by overseas orders.

Exports rose 57.9% to 23,060 units in the first quarter ­– an increase of 8,452 vehicles to account for 70.7% of year-to-date output, up from 57% in Q1 2023.

The EU remained the top export destination, with more than nine in 10 vehicles (96.7%) heading for the bloc. Production for the UK market, meanwhile, declined by 13.1% to 9,566 units.

Growth in January and February, however, was followed by a 19.2% decline in March output to 7,943 units - the first monthly fall since September 2023.

Exports declined by 12.6% to 5,084 units against the same month last year, with 732 fewer units made, while production for the UK fell 28.8% to 2,859 units.

The performance, says the SMMT, reflects market normalisation as manufacturers have worked hard to meet strong pent-up pandemic-related demand, as well as some temporary supply chain shortages and the early Easter bank holiday reducing working days in the month compared with 2023.

Growth is still expected this year, with the latest independent outlook expecting light van production volumes to hit over 135,000 units – a result of electric vehicle output ramping up.

Mike Hawes, the SMMT’s chief executive, said: “It’s good to see UK CV production record its best Q1 performance in some 16 years, success testament to the determination of manufacturers to deliver for this vital sector, while investing in the latest cutting edge, ultra-low and zero emission technology.”

Hawes continued: “Global demand continues for British-built commercial vehicles, emphasising the need for favourable market conditions to sustain our production capabilities for increasingly green vehicles.

“This means reducing energy costs, upskilling our workforce and maintaining free and fair trade deals, the result of which will allow us to attract further investment to improve productivity and decarbonise automotive manufacturing and its supply chain.”