Car production in the UK has fallen almost to its lowest since 1954 last year, with some 779,584 units rolling off British production lines in 2024, 13.9 per cent down on 2023.
Only during the unprecedented conditions of the pandemic and its associated lockdowns was activity at a lower ebb.
It is a confirmation of the frailty of both consumer sentiment at home, and of the weakness of world demand, given that around eight in every 10 cars made in Britain were destined for export, reports The Independent.
Sales to the largest overseas market, the European Union, and to China, were down by about a quarter and a fifth respectively. One bright spot was sales to the buoyant American market, up by 38.5 per cent, possibly boosted also, to some degree, by fears of future tariffs.
The Society of Motor Manufacturers and Traders (SMMT) also stressed that the changeover to making electric vehicles has also affected the numbers.
Jaguar and Nissan are two marques preparing to launch a new generation of electric cars to meet the demands of the zero emission vehicle mandate, which means that sales of new petrol and diesel cars will be reduced to 20 per cent of the market by 2030, with complete phase-out of fossil-fuel powered models, including hybrids, following in 2035.
Commensurate investment in battery production in new gigafactories are going ahead. As things stand, the UK ranks slightly below Slovakia in the global rankings, and is dwarfed by the Chinese industry, which, on the latest data, has now risen to an annual output of a dominant 27 million units, more than the United States, Japan, India and Germany combined.
Mike Hawes, chief executive of the SMMT gave an upbeat assessment of the situation, although British output is only expected to edge up in 2025 and to reach 1 million again in 2030.
He said: “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, exciting models and battery production on the horizon, the potential for growth is clear.
“Securing this future, however, requires industrial and trade strategies that deliver the competitive conditions essential for growth amidst an increasingly protectionist global environment.”
Pic: Viktor Bondarenko/Dreamstime.com
