UK vehicle production saw a significant drop in 2024, reaching its lowest point since 1954, excluding the pandemic year of 2020. While commercial vehicles showed growth, car production declined by almost 14%. The industry attributes this downturn to factories undergoing retooling for the production of electric vehicles (EVs). Predictions for 2025 remain cautious, with a further decline anticipated. However, industry leaders anticipate a rebound in 2026 as the EV transition reaches completion. The UK's Zero Emission Vehicle (ZEV) mandate, requiring a significant increase in EV sales, presents a challenge for manufacturers who argue that consumer demand isn't keeping pace.
UK vehicle production fell by almost 12% last year and is set to fall further this year – but industry chiefs insist it's a short-term issue due to factories retooling to build new EVs. The figures from the Society of Motor Manufacturers and Traders , which includes cars and vans, showed 905,233 units were produced in the UK in 2024. That figure consists of 779,584 cars and 125,649 commercial vehicles.
Hawes commented: “Amid significant geopolitical and trade tensions, UK manufacturers are set on turning billions of pounds of investment into production reality, transforming factories to make new electric vehicles for sale around the world. “Growing pains are inevitable, so the drop in volumes last year is not surprising. With new models and battery production on the horizon, the potential for growth is clear.
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