UK car production tipped to fall further after 11.8% slump in 2024
UK car and van output was forecast to fall sharply after an 11.8% slump in production to below one million units in 2024, the industry’s trade body warned on Thursday.
Factories produced a total of 905,233 units in the year, the Society of Motor Manufacturers and Traders (SMMT) said, adding that it expected further falls as the Stellantis plant in Luton is closed.
It now expects UK car and light van production to be around 839,000 units in 2025 before rising to 930,000 units in 2027, with the potential to get back above one million units in 2028, and more than 1.1 million by 2030.
There was also a 20% drop in battery electric, plug-in hybrid and hybrid vehicle output, which the SMMT said was expected, adding that these still accounted for more than a third of production - the second highest on record.
Companies announced investment of more than £20bn in electric vehicle production in 2023 and a further £3.5bn in 2024 so the decline was expected to be temporary, the SMMT added.
Chief executive Mike Hawes said the industry was still going in “one direction” but added there was fierce competition to attract investment.
Reporting by Frank Prenesti for Sharecast.com