CAR PRODUCTION FALLS AS FACTORIES PREPARE FOR NEXT-GEN ELECTRIC VEHICLES

Car manufacturers in the UK saw a decline in output last month while transitioning to new models, new figures reveal.

The Society of Motor Manufacturers and Traders (SMMT) recorded that 59,467 cars were manufactured, marking a 27% drop compared to the same time last year. This decline marks the first dip since August of the previous year, but the SMMT calls it a predicted outcome as car manufacturers repurpose their factories for next-gen electric vehicles.

There was a slight 0.3% decrease in volumes for the UK with 19,995 units produced, while international export slumped by 35.9% with 39,472 units being sent overseas; nevertheless, more than six out of ten cars manufactured in March were earmarked for global distribution.

The majority of these exports went to the European Union (57.9%), followed by the US (11.4%), China (5.9%), Australia (4.0%), and Japan (1.8%). Aside from traditional fuel-run cars, eco-friendly petrol alternatives like battery electric, plug-in hybrid, and hybrid vehicle models made up over one-third of the total production.

Despite the dip in March, car production in Q1 managed to stay afloat with a 1.1% increase, hitting 222,371 units when compared to the same timeframe in the previous year. SMMT's chief executive Mike Hawes, said: "This fall is not unexpected given the wholesale changes taking place within UK car factories as existing models are run out and more plants transition to electric vehicle production."

"We can expect further volatility throughout 2024 as manufacturers lay the foundations for a successful zero emission future. Recent investment announcements have boosted confidence and enhanced the UK's reputation but there needs to be an unrelenting commitment to competitiveness."

He added: "Free and fair trade deals must be secured, energy costs reduced and the workforce upskilled if we are to attract further investment to improve productivity and decarbonise automotive manufacturing and its supply chain."

New production estimates have predicted a 6.2% drop in UK car and light van production in 2023 to roughly 940,000 vehicles, primarily as a consequence of model changeovers. However, a return to growth is projected by 2025, and production is projected to surpass the one-million mark from 2026, reaching 1.2 million vehicles by the end of the decade, fueled by a rise in EV production.

2024-04-25T07:57:26Z dg43tfdfdgfd