Car output down as sector calls for measures to boost manufacturing

UK car and commercial vehicle production experienced an 11.6% drop in February, according to data released by the Society of Motor Manufacturers and Traders (SMMT).

Manufacturers produced 82,178 units, a decrease of 10,787 compared to the same period last year, attributed to factors including weak domestic and overseas markets, model transitions and plant restructuring.

Car manufacturing has now seen a 12th consecutive month of decline. Export remained a significant factor, accounting for over 80% of production, with a 1.3% increase to 60,034 units. However, car production for the UK market plummeted by 33.3% to 13,780 units.

While overall production fell, the share of electrified vehicles (battery electric, plug-in hybrid, and hybrid) increased marginally. Electrified car production accounted for 37.1% of total output in February, up from 36.3% last year.

Year-to-date, this figure stands at 39.6%, indicating a gradual shift towards electrification despite the overall production downturn. Commercial vehicle (CV) output also saw a significant decline, falling by 35.9% to 8,364 units. This drop was primarily driven by reduced van production.

The SMMT is calling for urgent government intervention to bolster the UK’s automotive sector and stimulate consumer demand. It criticises the recent Spring Statement for failing to provide adequate support, emphasizing the need for swift action on industrial and trade strategies and the immediate rollout of the Automotive Transformation Fund.

The SMMT is also pushing for measures to accelerate the transition to electric vehicles, including the cancellation of the VED Expensive Car Supplement for EVs, reduced VAT on public charging and EV sales and mandatory infrastructure rollout targets. It argues these measures would support the industry’s substantial investments in EV manufacturing and encourage consumer adoption.

Says Mike Hawes, SMMT Chief Executive:

“These are worrying times for UK vehicle makers with car production falling for 12 months in a row, rising trade tensions and weak demand. The market transition is not keeping pace with ambition and, while the industry can deliver growth – and green growth at that – it needs policies to deliver that reality.

“It was disappointing, therefore, to hear a Spring Statement that did nothing to alleviate the pressure on manufacturers and, moreover, confirms the introduction next month of additional fiscal measures which will actually dissuade consumers from investing. Without substantive regulatory easements, our manufacturing viability remains at risk and the UK’s transition to zero-emission mobility under threat.”