The UK automotive industry faced a challenging 2024, with vehicle production falling below one million units for the year. Data released by the Society of Motor Manufacturers and Traders (SMMT) revealed a total output of 905,233 cars and commercial vehicles. Marking an 11.8% decrease compared to the previous year. This decline can be largely attributed to the industry’s ongoing shift towards electric vehicle (EV) production.
Throughout the year, UK car manufacturers invested heavily in retooling their factories to meet the government’s ambitious targets for EV adoption. This significant transition, coupled with global economic headwinds and supply chain disruptions, contributed to the lower production figures. The SMMT acknowledged these challenges, with Chief Executive Mike Hawes stating that “growing pains are inevitable” during this period of transformation for all vehicles.
EV Production Dips, but Future Remains Bright
Interestingly, the production of EVs also experienced a decline in 2024. Output of battery electric, plug-in hybrid, and hybrid vehicles fell by 20.4% to 275,896 units. This drop can be attributed to several factors. Including factory retooling and adjustments in production lines to accommodate new EV models of these vehicles.
Despite the setbacks, the SMMT remains optimistic about the future of UK car manufacturing. The organization predicts that production could surpass one million units again as early as 2028. Driven by increased demand for EVs and the continued rollout of new zero-emission models, which include various types of vehicles. This positive outlook hinges on a stable economic environment and the successful implementation of the government’s EV strategy.
December Data Reflects Ongoing Challenges
The final month of 2024 painted a similar picture, with car production declining for the tenth consecutive month. December output dropped by 27.1% to 45,022 units, highlighting the ongoing challenges faced by the industry. However, this trend is expected to reverse as the transition to EV production gains momentum and new vehicle models hit the market.
In conclusion, the UK car industry experienced a turbulent 2024, grappling with the complexities of transitioning to electric vehicles. While production figures dipped, the long-term outlook remains positive. With continued investment, innovation, and government support. The UK is well-positioned to reclaim its position as a leading force in the global automotive landscape for all types of vehicles.
