UK car manufacturing has declined for the 12th consecutive month, with production falling by 11.6 per cent in February, as experts warn the net zero switch could further impact UK production.
Manufacturers produced 82,178 vehicles last month, 10,787 fewer than in February last year, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).
The downturn has been attributed to multiple factors, including soft markets at home and abroad, model changeovers and plant restructuring.
Car production specifically for the UK market saw a sharp decline of 33.3 per cent to 13,780 units, reflecting broader challenges facing the automotive sector.
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The switch to more electric vehicles could have an impact on UK automotive factories
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Industry leaders have expressed disappointment with the Chancellor’s Spring Statement, which offered no support for manufacturers or consumers during this challenging transition period.
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.
“It was disappointing 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.”
Despite the overall decline, exports remain the backbone of UK car manufacturing, with more than eight in ten units shipped abroad in February, with export volumes increasing by 1.3 per cent to 60,034 units.
The EU remained the largest market for UK car exports, taking 53.5 per cent, followed by the US (19.7 per cent) and China (6.3 per cent).
While shipments to the EU and China fell by 9.6 per cent and 10.9 per cent respectively, exports to the US rose by 34.6 per cent.
It comes as President Donald Trump announced new tariffs worth 25 per cent on all imports of foreign cars, which could be a hammer blow for British and European carmakers.
The SMMT is urging the Government to fast-track the promised Industrial and Trade strategies and immediately roll out the £2billion Automotive Transformation Fund.
Specific recommendations include cancelling the VED Expensive Car Supplement for EVs and cutting VAT on public charging and new battery electric vehicle sales.
The industry body also wants the Government to extend the Plug-in Truck Grant and introduce mandatory targets for infrastructure rollout.
These measures would support the industry’s significant investments in new factories, models and discounts, while encouraging consumers to transition to electric vehicles.
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Production of electrified vehicles, including battery electric, plug-in hybrid and hybrid cars, fell by 5.6 per cent to 27,398 units in February.
Despite this decline, these vehicles slightly increased their share of total production to 37.1 per cent, up from 36.3 per cent in February last year.
