Automakers in the UK produced the lowest number of vehicles in the UK since 1954 in 2024 as the country shifts towards electric vehicles (EVs).
According to data from Society of Motor Manufacturers and Traders (SMMT), vehicle production in the UK dropped by 11.8% in 2024, with 779,584 cars and 125,649 commercial vehicles.
The output is expected to drop further to 839,000 vehicles in 2025 before a slow recovery can happen to reach 1 million vehicles in 2030 if the transition to EVs remains on track.
Reasons for slowed production
The UK, like most countries, is striving towards a transition to electric vehicles. However, the transition has not been very successful, leading to the drop in production.
Another reason is that many automakers stopped the production of some gasoline models, but there hasn’t been a commensurate production of the electric vehicles because of tough economic conditions, which created a deficit.
SMMT is however confident that the drop in production is temporary and will soon be over because more than £20 billion worth of investment was made in 2023 and a further £3.5 billion in 2024 to drive the UK’s transition to EV production.
Mike Hawes, SMMT Chief Executive, said:
“Amid significant geopolitical and trade tensions, UK manufacturers are set on turning billions of pounds of investment into production reality, transforming factories to make new electric vehicles for sale around the world. Growing pains are inevitable, so the drop in volumes last year is not surprising. With new, exciting models and battery production on the horizon, the potential for growth is clear.”
Need for the right environment
While Hawes is confident that the UK auto industry will bounce back, he stressed that there’s need for the right market conditions to be met if this growth is to be realized.
“Securing this future, however, requires industrial and trade strategies that deliver the competitive conditions essential for growth amidst an increasingly protectionist global environment.”
This will require market regulation, as well as a trade strategy that involves tariff-free enhanced trade partnership with the EU. There’s also a need for trade and critical minerals agreements with existing and new trading partners.
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