UK vehicle manufacturing at lowest level since 1953
UK vehicle manufacturing has reached its lowest level since 1953, excluding the industry's pandemic shutdown, according to the latest figures, writes David Connett.
The number of cars and vans coming off British production lines fell 7.3 per cent in the first six months of the year, the Society of Motor Manufacturers and Traders (SMMT) said.
Production was slowed, or even stopped completely, as car makers reacted to the confusion surrounding the threats posed by US tariffs.
The closure of the Vauxhall Luton van plant by Stellantis helped drive van production down 45 per cent.
The only bright spot was that UK electric car production rose by 1.8 per cent, with EVs now making up a record 41.5 per cent of all cars produced in Britain in the first part of the year.
New car sales in Europe also slumped, falling more than 5 per cent in June, the European Automobile Manufacturers Association said.
Mike Hawes, SMMT chief executive, said the UK figures, while expected, were "very disappointing".
"Global economic uncertainty and trade protectionism have taken their toll on automotive production across the globe, with the UK no exception," he said.
The body said the US trade deal struck by the Government would act as a "basis for future growth".
"The industry is moving to the technologies that will be the future of mobility, our engineering excellence, highly-skilled workforce and global reputation are strengths, and we have an industrial strategy with advanced manufacturing and automotive at its core," Hawes said.
"With rapid delivery and the right conditions, UK automotive can reverse the current decline and deliver the jobs, economic growth and decarbonisation that Britain needs."
The Business Secretary, Jonathan Reynolds, blamed Donald Trump's tariffs and competition from China for the slump in manufacturing.
"I'm very concerned about automotive, the pressures on the system which come from the US trade agenda, but also an incredible increase in capacity from China.
"It's why, as a Government, we've adopted so many measures specifically around the automotive sector."
The Government has announced that grants for new electric cars are being reintroduced.
The industry is still awaiting details, but drivers will be able to reduce the purchase cost of a new electric car by up to £3,750.
Donald Trump's tariffs and competition from China are being blamed for the slump in manufacturing. (Pic: Al Drago/Bloomberg via Getty Images)
Officials hope the measure - restricted to vehicles priced up to £37,000 - will encourage more drivers to switch to electric motoring.
The top four best-selling car groups in Europe - Volkswagen, Stellantis, Renault and Hyundai - all sold fewer cars than in June 2024.
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