UK automotive manufacturing dropped by 11.9% in H1 amid international uncertainty, however rising EV output and bettering export outlook provide hope for restoration subsequent 12 months, in response to the Society of Motor Producers and Merchants (SMMT).
The decline was softened by a 6.6% improve in automotive manufacturing in June, though this was as compared with final 12 months when mannequin changeovers and provide chain points stymied output.
Consequently, year-to-date automotive output declined by 7.3% as 385,810 automobiles rolled off manufacturing facility traces.
Restructuring at industrial car manufacturing crops, in the meantime, resulted in a first-half quantity fall of 45.4% to 31,422 items.
Whereas total output fell, electrified automotive manufacturing rose by 1.8% to 160,107 items, delivering a document share of output for the primary half of the 12 months, with hybrid, plug-in hybrid and battery electrical automobiles accounting for greater than two in 5 (41.5%) items produced within the UK in 2025.
UK automotive manufacturing stays export-focused, with 76.9% of output headed abroad year-to-date and larger certainty now returning to key markets.
The EU stays the principle vacation spot for UK automotive exports (54.4% share), adopted by the US (15.9%) China (7.5%), Turkey (4.1%) and Japan (2.7%), with these 5 locations alone accounting for greater than eight in 10 abroad gross sales.
Regardless of three straight months of declining export volumes culminating in an 18.7% drop in June, the US maintained its place because the UK’s largest single export market underscoring the significance of the UK-US commerce deal.
That deal, which got here into power on June 10, provides the UK diminished tariff charges into the US automotive market, which the SMMT stated may change into a foundation for future progress.
With the worldwide financial system persevering with to be buffeted by financial and commerce uncertainty, the newest impartial manufacturing outlook anticipates whole 2025 car output will fall by 15% to 755,000 items in 2025, however an anticipated 6.4% improve subsequent 12 months would take whole manufacturing to 803,000 items.
The SMMT stated the fast implementation of the brand new Industrial Technique, nonetheless, with wider measures to cut back power prices, speed up infrastructure and handle expertise gaps, may restore the UK’s aggressive edge, returning Britain to a high 15 international auto manufacturing location and offering an extra £50 billion to the UK financial system.
The Authorities’s automotive sector technique, DRIVE35additionally units out a package deal of measures which is able to assist the sector and its financial and environmental ambitions.
Moreover, with the announcement of the Electrical Automotive Grant, which gives £650 million of funding for brand new EVs, the SMMT stated there’s the potential to energise the home market that underpins the UK’s attractiveness as an industrial funding alternative.
Mike Hawes, SMMT chief government, stated” “World financial uncertainty and commerce protectionism have taken their toll on automotive manufacturing throughout the globe, with the UK no exception.
“The figures aren’t, subsequently, surprising however stay very disappointing.
“Nonetheless, there are foundations for a return to progress.
“The business is transferring to the applied sciences that would be the way forward for mobility,?our engineering excellence, highly-skilled workforce and international repute are strengths, and we’ve got an?Industrial Technique with superior manufacturing and automotive at its core.
“With fast supply and the correct circumstances, UK Automotive can reverse the present decline and ship the roles, financial progress and decarbonisation that Britain wants.”
