UK car and commercial vehicle output falls in April

UK automotive production saw a sharp decline in April, with car and commercial vehicle (CV) manufacturing down -8.6% and -68.6% respectively, according to new data from the Society of Motor Manufacturers and Traders (SMMT). The total output of 59,203 vehicles marked the lowest April performance since 1952, excluding the pandemic-hit 2020.

The fall in production was attributed to a perfect storm of contributing factors, including the later timing of Easter, which reduced the number of working days, model changeovers, and continued industry restructuring.

Car exports dropped -10.1%, while domestic production also dipped -3.3%, reflecting subdued demand in key international markets. The UK’s two largest export destinations, the EU and US, saw shipments decline by -19.1% and -2.7% respectively, though the EU still accounted for more than half of all car exports. In contrast, exports to China and Turkey rose significantly, by 44.0% and 31.2%.

Commercial vehicle exports took a major hit, falling –75.8%, with the EU market down almost -79%. Domestic demand for CVs also slowed, down -54.6%, due in part to a major plant closure and stabilising demand for heavy goods vehicles following strong post-pandemic growth.

The weak April figures cap off the worst start to the year for UK vehicle production since 2009. The SMMT is now calling for the UK government to publish a robust industrial strategy aimed at bolstering investment and boosting competitiveness across the automotive sector.

“With automotive manufacturing experiencing its toughest start to the year since 2009, urgent action is needed to boost domestic demand and our international competitiveness,” said Mike Hawes, SMMT Chief Executive.

Hawes welcomed recent progress on trade deals with the EU, US, and India, noting these open new avenues for growth. But he warned that their benefits can only be realised if the UK creates the right conditions for investment through a long-term, innovation-led industrial strategy.

“To take advantage of these trading opportunities we must secure additional investment which will depend on the competitiveness and confidence that can be provided by a comprehensive and innovative long-term industrial strategy. Get this right and the jobs, economic growth and decarbonisation will flow across the UK,” Hawes added.