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UK CV production ‘strong overall’ in first half

Posted on 31 Jul 2024. Edited by: John Hunter. Read 864 times.
UK CV production ‘strong overall’ in first halfUK commercial vehicle (CV) manufacturing fell -2.9% in the first six months of the year as 56,956 vans, trucks, taxis, buses and coaches left factory gates, according to the latest figures published by the Society of Motor Manufacturers and Traders (SMMT). Despite the year-on-year decline, wrapped up by a -2% drop in output in June as temporary supply chain constraints impacted production, overall levels remain high given last year’s bumper first half and fulfilment of post-Covid-19 delivery backlogs.

Year-to-date output remains almost a third (31.3%) higher than the pre-pandemic five-year average, thanks to investment in new plants, models and technologies, and robust export demand. Overseas shipments of UK-built CVs – many of them zero-emission – were 3.6% up in the first half at 39,168 units, equivalent to more than two thirds of all output, with the European Union (EU) taking the lion’s share (97.2%), followed by Australia (1.2%) and the USA (0.5%). This growth was, however, unable to offset a -14.8% decline in the domestic market.

Mike Hawes, SMMT chief executive, said: “While a decline in output is always disappointing, some normalisation following the CV sector’s rapid post-pandemic recovery was expected. The sector remains in good health with strong global demand for high quality British-built CVs and plants ramping up EV production to meet current and future needs. However, the sector will not rest on its laurels and will work with the new Government to deliver the favourable industrial, trade and market conditions that are essential if manufacturers are to drive economic growth and decarbonisation in every part of the country.”

The news comes as the latest independent industry outlook forecasts light CV production to grow to some 110,000 units this year. Volumes are then expected to go above 130,000 in 2030, providing economic and trading conditions allow.

The UK already has a reputation as a major player in automotive production with one of the most diverse product bases in the world – including everything from mass-market cars to vans, trucks, buses, and specialist and luxury vehicles, exported globally. As a result, automotive is ideally placed to deliver economic growth in the short and long term.

The SMMT welcomes the commitments already made by the new government and looks forward to working with policymakers to create a dedicated industrial strategy that fosters competitiveness through investment in skills, clean affordable energy, free and fair trade, vibrant markets and a fair EV transition for all.