UK car production dips due to EV switch

UK car production fell by 11.9% in May as factories prepare for a new era of electric vehicles (EVs).

Society of Motor Manufacturers and Traders (SMMT) figures show some 70,000 new cars were built in the UK, during May, with almost three quarters being exported to foreign markets.

Production for the UK market rose by 9.7% to 17,754 units but did not offset a 17.4% decline in volumes for export.

Electrified vehicle (battery electric, plug-in hybrid and hybrid) production remained robust, with 26,475 units leaving factory gates – representing almost two fifths (38.0%) of all output, up by three percentages points compared with May 2023.

The SMMT says the share of electrified vehicles will only grow as manufacturers invest in greener product lines and technology to deliver Britain’s net zero ambitions.

Stellantis is one brand which plans to expand its EV production in the UK, by building vans in Luton. The future of the plant was called into question last week, however, as Stellantis UK head Maria Grazia Davino raised concerns over the UK's ZEV mandate and a lack of incentives to support EV uptake.

Mike Hawes, SMMT chief executive, said: “Massive change is underway in the UK’s car factories as manufacturers retool for new electric models. Amid strong international competition for green automotive investment, however, the UK needs to ensure it has the most attractive conditions for manufacturing businesses and a compelling offer for existing and new investors.

“Essential to this is a long-term industrial strategy, which encompasses all industry, all stakeholders and all of government in the pursuit of sustainable and green growth.”

Ahead of the general election, SMMT’s Vision 2035: Ready to Grow sets out the priorities the sector wants to see from the next government. This means backing British manufacturing and attracting green investment through an industrial strategy that guarantees affordable and sustainably energy, upscaled supply chains, new skills for the UK’s talented workforce, vibrant zero emission vehicle markets, and strong trading relationships that are fair and without barriers.  Success would see the sector deliver a cumulative value of more than £290 billion of zero emission vehicles by the end of 2035, with UK factories producing more than a million battery electric cars and vans a year.