Car production down and commercial vehicle output falls by two-thirds

UK car and commercial vehicle production fell in April – down collectively by 15.8% to 59,203 units – according to new figures from the Society of Motor Manufacturers and Traders (SMMT).

Vehicle output fell to the lowest level for the month since 1952, excluding 2020 when the first Covid lockdown effectively saw manufacturing cease.

The result caps off the sector’s lowest start to the year since 2009.

The SMMT says that April’s decline in car output was driven by a combination of factors, notably the later timing of Easter – which saw fewer production days in the month, as well as model changeovers and lower demand in key export markets. 

Car production fell by 8.6% to 56,534 units, while commercial vehicle output declined by 68.6% to 2,669 units, driven primarily by a plant closure and normalising demand for new heavy goods vehicles (HGVs). 

Car production for export fell 10.1%, while production for the domestic market also decreased, by 3.3%.

Shipments to the UK’s two largest global markets, the EU and US, fell by 19.1% and 2.7% respectively, although the EU still took more than half of all exports while the US received 16.5%.

Conversely, exports to China and Turkey rose by 44% and 31.2% respectively.

Commercial vehicle export volumes, meanwhile, fell sharply by 75.8%, with just over half (50.7%) of output heading overseas.

The decline was driven by a 78.9% drop in shipments to the EU, but the bloc retained the lion’s share of exports at 84.9%.

CV output for the domestic market also softened, down by 54.6%.

Industry awaits publication of the Government’s industrial strategy which, the SMMT says, must contain measures that boost the competitiveness of Britain’s most valuable export sector.

A strategy with automotive and advanced manufacturing at its heart will enable the sector to take advantage of the UK’s new trading arrangements, including those agreed with the EU and US – while exploring possibilities for growth in other markets, notably India, delivering economic benefits across the UK, it argues.

Mike Hawes, SMMT chief executive, said: “With automotive manufacturing experiencing its toughest start to the year since 2009, urgent action is needed to boost domestic demand and our international competitiveness.

“Government has recognised automotive manufacturing’s critical role in driving the UK economy, having successfully negotiated improved trading conditions for the sector with the US, EU and India in the space of a month. 

“To take advantage of these trading opportunities we must secure additional investment which will depend on the competitiveness and confidence that can be provided by a comprehensive and innovative long-term industrial strategy.

“Get this right and the jobs, economic growth and decarbonisation will flow across the UK.”