Commercial vehicle production dip raises concerns over long-term growth

UK commercial vehicle production has declined for the second month in a row, in November, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).

A total of 12,749 commercial vehicles left factory gates, last month, representing a year-on-year drop of 4.1%.

The SMMT is calling for the Government to introduce an “ambitious industrial strategy – with automotive at its heart.”

It claims the “right” strategy could help deliver a “massive” £50 billion of green growth by 2035

The UK’s commercial vehicle sector is export-led with seven in 10 (70.9%) vehicles produced in November heading overseas, although volumes were down by 4.4% to 9,034 units.

The EU continues to be Britain’s biggest export market, with almost all (98.7%) exports destined for sale in the bloc. Production for the UK is still significant, at 3,715 units, although 3.2% below November last year underlining the importance of measures that encourage greater uptake of new CVs – particularly the latest zero emission models, many being made in Britain.

In the year to date, volumes are up 5.6% with 118,583 units produced – the largest January-November output since 2008, reflecting robust demand in the UK and Europe. Growth is also greener with ever more British-built zero emission models being made.

The SMMT said the UK can have a major role in decarbonising the sector globally – bringing with it new investment, a stronger economy and more jobs – but it warned that such gains are not guaranteed as manufacturers look globally for the most competitive countries in which to invest.

Mike Hawes, SMMT chief executive, explained: “With more British-built commercial vehicles keeping businesses here and abroad on the move, that supports UK jobs, trade and economic growth. It’s essential this sector continues to thrive but long-term growth requires an ambitious Industrial Strategy to make Britain a globally attractive location for new investment.

“Having strong markets close to where products are made is a major advantage, so government’s review of the EV mandate must come quickly and ensure market support is as ambitious as regulation.”