The UK automotive industry faced a significant setback in April, with car and commercial vehicle production dropping by 15.8% to 59,203 units, according to the latest data from the Society of Motor Manufacturers and Traders (SMMT). This decline marks the lowest level of production for the month since 1952, excluding the impact of the Covid-19 lockdown in 2020.
The sharp decrease in output was attributed to various factors, including the later timing of Easter, which resulted in fewer production days in the month compared to previous years. Additionally, model changeovers and reduced demand in key export markets contributed to the decline in production. Car output fell by 8.6% to 56,534 units, while commercial vehicle production plummeted by 68.6% to 2,669 units, primarily due to a plant closure and normalizing demand for new heavy goods vehicles.
Export volumes for both cars and commercial vehicles experienced a decline, with car exports dropping by 10.1% and commercial vehicle exports decreasing by 75.8%. Shipments to the EU and US, the UK’s largest global markets, saw declines of 19.1% and 2.7% respectively. However, exports to China and Turkey saw increases of 44.0% and 31.2% respectively.
The SMMT highlighted that economic uncertainty and rapidly changing global trading conditions are constraining production in the automotive sector. The industry is eagerly awaiting the government’s industrial strategy, which is expected to include measures aimed at enhancing the competitiveness of the UK’s automotive sector. A strong industrial strategy focused on automotive and advanced manufacturing could leverage the UK’s new trading arrangements with the EU, US, and other markets like India.
Mike Hawes, Chief Executive of SMMT, emphasized the need for urgent action to stimulate domestic demand and bolster international competitiveness. He highlighted the importance of securing additional investments to capitalize on the trading opportunities facilitated by recent agreements with key trading partners. A comprehensive and innovative industrial strategy is seen as crucial for driving growth, creating jobs, and advancing decarbonization efforts across the UK.
In conclusion, the UK automotive industry is facing challenges that require strategic interventions to revitalize production and ensure long-term sustainability. The industry’s resilience and adaptability will be crucial in navigating the evolving global landscape and seizing opportunities for growth and innovation.
