UK Car Production Hits 73-Year Low: What’s Happening?

UK car manufacturing has fallen to its lowest level since 1952, aside from pandemic-related lockdowns. In April, production dropped by 15.8%, resulting in only 59,203 units, compared to 70,319 the previous year. This decline is a significant concern for the industry.

Troublesome Trade Negotiations

Recent challenging trade talks with Europe, India, and the USA have contributed to this downturn:
- UK car exports have diminished by over 10%.
- Commercial vehicle production and exports have plummeted by 68.6% and 75.8%, respectively.

Industry Calls for Action

Mike Hawes, CEO of the Society of Motor Manufacturers and Traders (SMMT), emphasized the need for immediate measures:
- Domestic Demand: There is an urgent need to boost domestic demand.
- International Competitiveness: It's crucial to strengthen the UK's global market standing.

Government Role

The UK government has improved trade terms with major markets, but further steps are necessary:
- Investment: More investment is needed to secure growth.
- Strategy: A comprehensive, strategic approach is essential to enhance competitiveness and foster confidence.

Hawes believes that with the right strategy, the automotive sector can drive job creation, economic growth, and decarbonization across the UK.

  

Summary: UK car production has reached a 73-year low (excluding lockdowns) due to declining exports and trade difficulties. The SMMT highlights the urgent need for domestic demand growth and a strategic approach to harness new trade opportunities.