A confluence of factors left November 2024 as a very poor month for the UK’s automotive manufacturing sector.
UK car output fell 30.1% in November, the ninth consecutive month of decline, according to figures published by the Society of Motor Manufacturers and Traders (SMMT).
The SMMT said some 64,216 cars were produced in Britain and the drop on last year’s pace was caused by a combination of factors, including strategic product decisions, weakness in key global markets, how the calendar fell and last year’s high base for comparison (supply was in an upswing phase after a prolonged period of constraints).
The SMMT also said all major manufacturers experienced declines in November, representing the worst performance for the month since 1980.
Output for both domestic and export markets fell sharply, down 56.7% and 21.3% respectively.
Some 19,165 battery electric, plug-in hybrid and hybrid electric cars were made in the month, representing almost a third (29.8%) of output, despite volumes declining by 45.5%. From January to November, UK car makers have produced more than a quarter of a million electrified vehicles, down -19.7% on the same period in 2023 due primarily to model switchovers taking place at major plants.
In the year to date, UK car output has fallen by 12.9% to 734,562 units – 108,787 fewer than the same period in 2023 and almost half a million short of 2019 volumes.
Given the restructuring that is taking place across the global automotive industry which has seen plant closures, including the UK over this period, and the changes underway as companies transition from ICE to EV production, a decline was expected, the SMMT said.
The SMMT also said that with the UK domestic EV market not growing as fast as expected, the UK government ‘must act quickly by introducing incentives for private consumers, boosting infrastructure rollout and fast tracking an industrial and trade strategy’ for the sector.
The trade association also called for ‘urgent’ changes to the UK’s ZEV Mandate, which threaten to impose big fines on UK car manufacturers who will likely undershoot UK BEV market share targets for 2024. The SMMT said the UK Government ‘must publish its consultation on the changes to the ZEV Mandate regulation, as the link between a vibrant local market and healthy local production is a critical one’.
‘Little Christmas cheer for the sector’
Mike Hawes, SMMT Chief Executive, said: “These figures offer little Christmas cheer for the sector. While a decline was to be expected given the extensive changes underway at many plants, manufacturing is under pressure at home and abroad, with billions of pounds committed to new technologies, new models and new production tooling. Government can help by supporting consumers in the transition, fast tracking its Industrial Strategy for advanced manufacturing and, most urgently, reviewing the market regulation which is putting enormous strain on the sector.”
Source from Just Auto
Disclaimer: The information set forth above is provided by just-auto.com independently of Alibaba.com. Alibaba.com makes no representation and warranties as to the quality and reliability of the seller and products. Alibaba.com expressly disclaims any liability for breaches pertaining to the copyright of content.
