Car and commercial vehicle production in the United Kingdom declined in March, according to new data from the Society of Motor Manufacturers and Traders (SMMT). The overall vehicle output fell by 8.2% compared to the same month last year, with 72,511 units leaving factories.
Car and Commercial Vehicle Output
The number of cars manufactured stood at 69,755, representing a decrease of 0.8% year-on-year. Meanwhile, commercial vehicle (CV) production plummeted by 68% to just 2,756 units. The SMMT attributed the drop in car output to a temporary parts supply challenge that halted production at a major plant, weak export demand from Asian and US markets, and model changeovers. Commercial vehicle volumes continued to reflect ongoing restructuring within the sector.
Export Performance
Exports of cars and commercial vehicles also fell, with car exports declining by 4.3% to 49,339 units and CV exports dropping by 54% to 1,602 units. Despite this, production for overseas buyers still accounted for 70% of total vehicle output. The European Union remained the UK's largest global market, absorbing 91.6% (1,467 units) of CV exports and 62.6% (30,899 units) of car exports. Notably, EU demand for UK-built cars rose for the fourth consecutive month, the SMMT highlighted.
Industry Reaction
Mike Hawes, Chief Executive of the SMMT, commented: "Car production stabilising in March is welcome news for both assembly and the wider supply chain. Government's recent intervention to bring down electricity costs will provide a major and long-called-for boost, but the scheme's benefits must be delivered urgently as the geopolitical situation offers little optimism."
Hawes further stressed the importance of maintaining trade relations: "We must ensure any 'Made in Europe' proposals from the European Commission do not exclude the UK as the two industries are integrated such that both would suffer if the free trade provisions enshrined in the Brexit deal were undermined. The EU and UK must work together to avoid that scenario – and the looming threat of tariffs arising from stricter rules of origin on electrified vehicles – to ensure a positive outcome for industry, economies and consumers on both sides of the Channel."
