Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

UK car production declines for eighth consecutive month amid EV transition challenges

by November 28, 2024
November 28, 2024
UK car production declines for eighth consecutive month amid EV transition challenges

Car production in the UK has fallen for the eighth straight month, intensifying pressure on the automotive industry as it navigates the shift towards electric vehicles (EVs).

According to the latest figures from the Society of Motor Manufacturers and Traders (SMMT), manufacturing output declined by 15.3% in October, producing 77,484 units. This drop leaves the total output down by 10% so far this year.

The downturn comes amid market turmoil following Stellantis—the parent company of Vauxhall—announcing plans to close its van-making plant in Luton, putting up to 1,100 jobs at risk. The company cited the UK government’s stringent zero-emission vehicle (ZEV) mandate as a contributing factor.

Mike Hawes, Chief Executive of the SMMT, expressed deep concern over the industry’s future. “These are deeply concerning times for the automotive industry, with massive investments in plants and new zero-emission products under intense pressure,” he said.

Hawes highlighted that the slowdown in the global market, especially for EVs, has significantly impacted production. He noted that the UK is particularly exposed due to having “arguably the toughest targets and most accelerated timeline but without the consumer incentives necessary to drive demand.”

On Tuesday, Stellantis announced plans to consolidate its UK van manufacturing operations by creating an all-electric hub at its Ellesmere Port plant in Cheshire, investing £50 million in the facility. The decision aims to streamline production and focus on electric vehicle manufacturing in response to the ZEV mandate.

The ZEV mandate requires that at least 22% of new cars sold by each manufacturer in the UK this year must be zero-emission, with the level increasing annually. Stellantis stated that the decision to close the Luton plant was made within the context of these “stringent” regulations.

Jonathan Reynolds, the Business Secretary, told Members of Parliament that ministers had done “everything we possibly” could to prevent the closure of the Luton plant. He also confirmed plans to review the ZEV mandate as part of a consultation on the government’s plan to ban the sale of new “purely petrol and diesel” cars by 2030.

Liam Byrne, Chairman of the Business Select Committee, wrote to Reynolds with a series of questions regarding support for local communities affected by the closure and measures to boost consumer demand for electric vehicles—a concern echoed by several car manufacturers.

The SMMT’s latest figures reveal that the production of battery electric, plug-in hybrid, and hybrid electric cars fell by a third in October. The 24,719 units produced represented 31.9% of the total output.

Overall, production volumes for both domestic and export markets declined in October, down 4.7% and 17.6%, respectively. Notably, eight out of ten cars manufactured in the UK are shipped abroad.

Mike Hawes emphasized the challenges of stimulating demand and meeting regulatory targets, stating: “The cost of stimulating that demand and complying with those targets is huge and, as we are seeing, unsustainable. Urgent action is therefore needed, and we will work with government on its rapid review of the regulation and the development of an ambitious and comprehensive industrial strategy to assure our competitiveness.”

Read more:
UK car production declines for eighth consecutive month amid EV transition challenges

0
FacebookTwitterGoogle +Pinterest
previous post
First-time buyers rush to complete purchases ahead of stamp duty increase
next post
Labour’s tax hikes dampen UK consumer and business confidence

You may also like

AI Virtual Assistants in Omnichannel Support: Bridging CRM...

October 25, 2024

Entrepreneurs Wanting to Preserve Wealth: Go for Real...

October 24, 2024

Members of ‘pension liberation scheme’ lose tax case

March 28, 2023

Raspberry Pi Shares Surge on London Debut, Sparking...

June 12, 2024

UK security minister announces fraud crackdown

July 12, 2023

Stocks Rise as Rishi Sunak Becomes Prime Minister

November 10, 2022

Regional hiring slumps as Labour’s NI rise dents...

January 14, 2025

John Lewis to end ‘never knowingly undersold’ era...

August 12, 2022

FCA to investigate the treatment of PEPs by...

September 6, 2023

Bank of England Deputy Governor says he would...

November 24, 2022

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Padel club boom sees 3,200 venues built in 2024 as global popularity accelerates

      June 27, 2025
    • Sweet or taxable? M&S strawberry sandwich sparks new VAT debate

      June 27, 2025
    • Starmer thanks business for footing tax bill

      June 27, 2025
    • UK SMEs must strengthen cybersecurity as geopolitical threats escalate, warns Espria

      June 27, 2025
    • Jeremy Hunt ‘made a mistake’ targeting non-doms, says shadow business secretary

      June 27, 2025
    • Small firms raise alarm over Companies House rule change forcing profit disclosure

      June 27, 2025

    Categories

    • Business (8,326)
    • Investing (2,074)
    • Politics (15,824)
    • Stocks (3,172)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved