The UK produced 905,233 cars and commercial vehicles in 2024, an 11.8% year-on-year decline, according to data released by the Society of Motor Manufacturers and Traders (SMMT). This marks the lowest annual output since 2020 and reflects ongoing challenges as automakers retool factories to meet government mandates for electric vehicle (EV) production.
Output of EVs, including battery electric, plug-in hybrid, and hybrid models, fell 20.4% to 275,896 units. The broader decline was attributed to global market weakness, supply chain disruptions, and factory retooling pauses. Production has dropped for ten consecutive months since March 2024, with December output down 27.1% year-over-year to 45,022 units.
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The UK government requires automakers to ensure 22% of new car sales are zero-emission in 2024, rising to 80% by 2030. SMMT CEO Mike Hawes described the production slump as a transitional phase: āGrowing pains are inevitable, so the drop in volumes last year is not surprising. Manufacturers are investing heavily in electrification, but recovery depends on sustained demand and stable policies.ā
The SMMT report projects UK car and light van production could rebound to over one million units by 2028 if EV adoption accelerates and planned zero-emission models launch on schedule. However, analysts note that global economic uncertainty, high energy costs, and competition from cheaper Asian EVs pose risks to this outlook.
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The UK automotive sector, which employs over 780,000 people, has faced pressure from delayed EV incentives and uneven consumer uptake. While EV sales accounted for 16.5% of new UK car registrations in 2024, affordability concerns and charging infrastructure gaps persist.
The production decline contrasts with recent investments by automakers like Nissan and Jaguar Land Rover in UK EV facilities, suggesting long-term confidence despite short-term volatility. The SMMT has called for additional government support to ease the transition, including subsidies for energy-intensive industries and faster rollout of public charging networks.
Source: Reuters