UK Car Production Declines in May as Industry Shifts Towards Electric Vehicles

The UK car industry is undergoing a significant transformation as it prepares for a new era of electric vehicles (EVs). According to the Society of Motor Manufacturers and Traders (SMMT), car production in the UK fell by 11.9% in May, with almost three quarters of the 70,000 new cars built being exported to foreign markets.

Despite the overall decline in production, the production of electrified vehicles, including battery electric, plug-in hybrid, and hybrid vehicles, remained robust. In fact, almost two fifths of all output in May were electrified vehicles, representing a three percentage point increase compared to the previous year. This trend is expected to continue as manufacturers invest in greener product lines to support Britain’s net zero ambitions.

One brand leading the way in expanding EV production in the UK is Stellantis, which plans to build electric vans in Luton starting in 2025. However, concerns have been raised about the UK’s ZEV mandate and the lack of incentives to support EV uptake, highlighting the need for a more supportive environment for green automotive investment.

Mike Hawes, SMMT chief executive, emphasized the need for a long-term industrial strategy to ensure the UK remains competitive in attracting green investment and supporting manufacturing businesses. The SMMT’s Vision 2035: Ready to Grow outlines the sector’s priorities for the next government, including affordable and sustainable energy, upscaling supply chains, developing new skills for the workforce, and creating vibrant zero emission vehicle markets.

Success in implementing these priorities could see the UK car industry deliver a cumulative value of more than £290 billion in zero emission vehicles by 2035, with UK factories producing over a million battery electric cars and vans annually. This highlights the potential for growth and innovation in the UK car industry as it transitions to a greener future.