Production of UK commercial vehicles (CV) decreased by -2.9% in the initial half-year period, with a total of 56,956 vans, trucks, cabs, buses, and coaches being produced, according to the most recent data released today by the Society of Motor Manufacturers and Traders (SMMT). Despite the decline compared to the previous year, there was a -2.0% reduction in output in June due to temporary constraints in the supply chain affecting production. Nevertheless, overall levels remain high due to the strong performance in the previous year’s first half and the fulfillment of post-Covid delivery backlogs.1
The year-to-date production remains nearly one-third (31.3%) higher than the average of the five years before the pandemic, thanks to investments in new factories, models, and technologies, along with strong overseas demand. Overseas deliveries of UK-manufactured CVs, many of which are emission-free, saw a 3.6% increase in the first half to 39,168 units, comprising over two-thirds of the total output, with the European Union receiving the majority (97.2%), followed by Australia (1.2%) and the United States (0.5%). However, this growth was insufficient to offset a -14.8% decline in the domestic market.
Mike Hawes, Chief Executive of SMMT, commented,
Although a reduction in output is disappointing, it was anticipated as part of the CV industry’s return to normalcy post the rapid recovery from the pandemic. The industry continues to thrive, with a strong global demand for high-quality CVs made in Britain and the escalation of EV production in response to current and future requirements. However, the industry will not be complacent and will collaborate with the new government to ensure favorable industrial, trade, and market conditions are in place to enable manufacturers to drive economic growth and promote decarbonization nationwide.
This update coincides with the recent independent industry outlook predicting an increase in light CV production to about 110,000 units this year. Forecasts indicate that volumes are set to exceed 130,000 by 2030, subject to favorable economic and trading conditions.3
The UK already holds a strong position in automotive production with a diverse product range that caters to global markets, including a variety of vehicles from mass-market cars to vans, trucks, buses, and specialized luxury models. Therefore, the automotive sector is well-positioned to drive economic growth in the short and long term. SMMT appreciates the commitments made by the new government and anticipates working closely with policymakers to develop a dedicated industrial strategy that encourages competitiveness through investments in skills, clean and affordable energy, free and fair trade, dynamic markets, and a smooth transition to EVs for all.
1 CV Production, January-June 2023: 58,679 units
2 43,391 units manufactured between Jan-June 2015-19
3 Independent production outlook focusing on LCVs exclusively – July 2024
SOURCE: SMMT