UK car and commercial vehicle production declined -11.6% in
February, to 82,178 units, according to the latest figures
released today by the Society of Motor Manufacturers and Traders
(SMMT). Manufacturers turned out 10,787 fewer cars, vans, trucks,
taxis, buses and coaches than in February the year before, with
multiple factors at play, notably soft markets at home and
overseas, model changeovers and plant restructuring.
In the 12th consecutive month of decline for car
manufacturing, the lion's share of output was for export, with
more than eight-in-10 units shipped abroad in the month and
volumes up 1.3% to 60,034 units. Car production for the UK
market, meanwhile, fell -33.3% to 13,780 units. The EU remained
the largest market for UK car exports, taking 53.5%, followed by
the US (19.7%) and China (6.3%). In line with recent trends,
while shipments to the EU and China fell -9.6% and -10.9%
respectively, those to the US rose 34.6%. Turkey and Japan
rounded off the top five car export markets, taking a combined
6.3% share, with shipments up 75.5% and 119.2% respectively.
UK production of battery electric, plug-in hybrid and hybrid
cars fell -5.6% to 27,398 units in the month, but still boosted
their share marginally to 37.1%, from 36.3% last February. In the
year-to-date these electrified cars have taken a 39.6% share of
production, up from 36.0% a year ago, with a more modest -2.1%
fall in volumes compared with overall output down -11.0%.
CV output, meanwhile, fell -35.9% to 8,364 units, driven
primarily by less van production and following last year's
February performance, which was the best since 2008 when output
almost doubled.1 Volumes were driven by domestic
demand, accounting for 55.2% of output with volumes up by more
than half to 4,621 units. CV exports, however, fell -62.7% to
3,743 units, and with 93.8% heading to the EU, reflecting a drop
of 5,956 units shipped to the bloc.
The overall performance reflects the challenges the sector faces
globally. Measures are needed urgently to bolster the UK's
competitiveness and drive consumer demand. Yesterday's Spring
Statement by the Chancellor, which offered no support for the
industry or consumers, represented a missed opportunity and will
delay further the sector's ability to deliver growth for the UK
economy. The forthcoming Industrial and Trade strategies must,
therefore, be fast-tracked to signal the UK is open for business,
and the £2 billion promised by government via the Automotive
Transformation Fund rolled out immediately.
Fundamental to growth will be a strong new vehicle market, one
that is increasingly electrified. Government must support all
elements of road transport in this transition by cancelling the
VED Expensive Car Supplement for EVs, cutting VAT on public
charging and new BEV sales, extending the Plug-in Truck Grant and
introducing mandatory targets for infrastructure rollout. This
would back the industry's billions of pounds of investment in new
factories, models and discounts, and embolden consumers and
operators to make the switch.
Mike Hawes, SMMT Chief Executive,
said, “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.”
